Latest revision as of 16:36, 17 October 2023

The Bank of England (BOE) is the central bank of the United Kingdom and the model on which most modern central banks have been based. The BOE was established in 1694 to act as the English Government's banker, and is still one of the bankers for the Government of the United Kingdom.

In this Wiki we will take a look at the Bank of England's Structure, Mandate and more.

United Kingdom – The Bank of England (BOE)

BOE Structure

The structure of the Bank of England includes the Monetary Policy Committee or MPC for short. The MPC is a 9 member committee consisting of a governor, 2 deputy governors, 2 executive directors, and 4 outside economic experts.

The BOE is frequently touted as one of the most effective central banks in the world because they have never once defaulted on its debt. This is impressive because they have had a rather long history on the global financial scene.

The BOE meets monthly to discuss and adjust monetary policy. If they choose to meet more than once per month then this is an indication that there are some major concerns that the BOE is presently facing. These are times that traders get some really nice trading opportunities with lower risk than normal because the price tends to move further and stronger for much longer than it would do under normal circumstances. When the market gets concerned about something the price moves tend to be cleaner and more aggressive.

BOE Mandate

Their mandate is to maintain monetary and financial stability within the United Kingdom. The BOE monetary policy mandate is to keep prices stable and to maintain confidence in their currency. They want to have confidence in their currency because the UK does business with a large number of other countries. The UK is blessed with a very favourable geographic location that is great for international trade. To accomplish this they have an inflation target of 2%.

If inflation gets higher than the 2% level the central bank will look to curb inflation to a level below 2%. This will in turn prompt them to again take measures to boost inflation back up when they have achieved their goals. Most major central banks are targeting roughly 2% growth within their economies per year.

www.bankofengland.co.uk

Related Wikis

Readers of European Central Bank also viewed:

@@ Line 1: / Line 1: @@
-The Bank of England (BOE) is the [https://volatility.red/Central_banks central bank] of the United Kingdom and the model on which most modern [https://volatility.red/Central_banks central banks] have been based. The BOE was established in 1694 to act as the English Government's banker, and is still one of the bankers for the Government of the United Kingdom.
+The Bank of England (BOE) is the [[Central_banks | central bank]] of the United Kingdom and the model on which most modern [[Central_banks | central banks]] have been based. The BOE was established in 1694 to act as the English Government's banker, and is still one of the bankers for the Government of the United Kingdom.
 In this Wiki we will take a look at the Bank of England's Structure, Mandate and more.
@@ Line 14: / Line 14: @@
 The structure of the Bank of England includes the [[Monetary Policy Committee]] or MPC for short.  The MPC is a 9 member committee consisting of a governor, 2 deputy governors, 2 executive directors, and 4 outside economic experts.
-The BOE is frequently touted as one of the most effective [https://volatility.red/Central_banks central banks] in the world because they have never once defaulted on its debt.  This is impressive because they have had a rather long history on the global financial scene.
+The BOE is frequently touted as one of the most effective [[Central_banks | central banks]] in the world because they have never once defaulted on its debt.  This is impressive because they have had a rather long history on the global financial scene.
-The BOE meets monthly to discuss and adjust monetary policy.  If they choose to meet more than once per month then this is an indication that there are some major concerns that the BOE is presently facing.  These are times that traders get some really nice [https://volatility.red/Trading trading] opportunities with lower [https://volatility.red/Risk risk] than normal because the [https://volatility.red/Price_Action_Analysis price] tends to move further and stronger for much longer than it would do under normal circumstances.  When the market gets concerned about something the [https://volatility.red/Price_Action_Analysis price moves] tend to be cleaner and more aggressive.
+The BOE meets monthly to discuss and adjust monetary policy.  If they choose to meet more than once per month then this is an indication that there are some major concerns that the BOE is presently facing.  These are times that traders get some really nice [[trading]] opportunities with lower [[risk]] than normal because the [[Price_Action_Analysis | price]] tends to move further and stronger for much longer than it would do under normal circumstances.  When the market gets concerned about something the [[Price_Action_Analysis | price moves]] tend to be cleaner and more aggressive.
 =='''BOE Mandate'''==
-Their mandate is to maintain monetary and financial stability within the United Kingdom.  The BOE monetary policy mandate is to keep [https://volatility.red/Price_Action_Analysis prices] stable and to maintain confidence in their [[currency]].  They want to have confidence in their [[currency]] because the UK does business with a large number of other countries.  The UK is blessed with a very favourable geographic location that is great for international trade.  To accomplish this they have an [https://volatility.red/Fundamental_Analysis#Inflation_and_Deflation inflation] target of 2%.
+Their mandate is to maintain monetary and financial stability within the United Kingdom.  The BOE monetary policy mandate is to keep [[Price_Action_Analysis | prices]] stable and to maintain confidence in their [[currency]].  They want to have confidence in their [[currency]] because the UK does business with a large number of other countries.  The UK is blessed with a very favourable geographic location that is great for international trade.  To accomplish this they have an [[Fundamental_Analysis#Inflation_and_Deflation | inflation]] target of 2%.
-If [https://volatility.red/Fundamental_Analysis#Inflation_and_Deflation inflation] gets higher than the 2% level the [https://volatility.red/Central_banks central bank] will look to curb [https://volatility.red/Fundamental_Analysis#Inflation_and_Deflation inflation] to a level below 2%.  This will in turn prompt them to again take measures to boost [https://volatility.red/Fundamental_Analysis#Inflation_and_Deflation inflation] back up when they have achieved their goals.  Most major [https://volatility.red/Central_banks central banks] are targeting roughly 2% growth within their economies per year.
+If [[Fundamental_Analysis#Inflation_and_Deflation | inflation]] gets higher than the 2% level the [[Central_banks | central bank]] will look to curb [[Fundamental_Analysis#Inflation_and_Deflation | inflation]] to a level below 2%.  This will in turn prompt them to again take measures to boost [[Fundamental_Analysis#Inflation_and_Deflation | inflation]] back up when they have achieved their goals.  Most major [[Central_banks | central banks]] are targeting roughly 2% growth within their economies per year.
 [http://www.bankofengland.co.uk/ www.bankofengland.co.uk]
+==Related Wikis==
+Readers of '''European Central Bank''' also viewed:
+* [[Federal Reserve]]
+* [[Central banks]]
+* [[Economic data releases]]
+* [[The Bank of Canada]]
+* [[The Bank of Japan]]