The Bank of England (BoE) is the central bank for the United Kingdom, acting as the government's bank and lender of last resort. With headquarters in the City of London, it issues currency and oversees monetary policy. It is the UK equivalent of the Federal Reserve in the United States.
Established in 1694, the Bank of England (BoE) has been responsible for setting the UK's official interest rate since 1997, when authority over monetary policy was transferred from the government to the BoE. Interest rate policy is set by the Monetary Policy Committee (MPC), led by the Governor of the Bank of England. The MPC meets eight times a year to consider the need to change interest rates in order to achieve the government's inflation target. It raises and lowers the bank rate, known as Bank of England base rate, which is the rate charged to domestic banks.