Discuss the role that the Bank of England plays within the UK economy. :: Economics

Discuss the contri exception that the entrust of England plays within the UK economy.The depone of England was founded in 1694 to act upon the government asits banker and debt-manager. Since it was founded, its role hasdeveloped and evolved into what we prolong today, with its role centredon the management of the nations monetary unit, the pound and it isthe infrastructure of the UKs pecuniary system.(http//www.bankofengland.co.uk/about/ tale/index.htm visited 27thOctober 2005 last updated 12th June 2002 by Anon)The history of the Bank is one of great relate in this country, butto a fault of continuing relevance and importance to the bank today. Eventsthat have taken locate within the last three hundred years have helpedto conformation and influence the role and the general responsibilities ofthe Bank. The Bank has moulded the culture and traditions and theexpertise of the Bank as a central unit to the early years of the twenty-firstcentury. Much of the history of the bank ru ns in tandem to thefinancial and sparing history of this country, and often too thepolitical history of the UK more generally. at that place have been many key points in the history of the Bank which haveguided its future in this country. In the early years the Bank systemwas weak in the rule of King William and Queen Mary. everyplace the yearsthough, various progressions have been made with the introduction ofloans, kindle rank and various other things which make up the Banktoday.The Bank of England is controlled by the level of interest rates it stripes via the manipulation of short term interest rates. This iscontrolled by the Monetary Policy Committee (MPC). If the MPC thinkthat the demand is set to rise too fast, then they go forth increase theinterest rate, but if they think demand is growing at a slow rate, ormaybe even possibly falling, they will then reduce the interest rate.This is known as the transmission mechanism.The MPC is made up of nine members. fiver of them are from within theBank of England and include the Governor and two surrogate Governors, theother four are called external members and are appointed by theChancellor. At each monthly meeting the members vote on what they call back should happen to the interest rates. If the vote is equal,then the Governor of the Bank of England has the casting vote.There are many different internal consumer demand changes that willaffect the general public. Firstly there is consumer borrowing. Manyconsumers use this rule to borrow money in the form of credit cards