Bank of England
The Bank of England is responsible for setting the base rate in the UK. The Monetary Policy Committee meets once a month and they are required to use interest rates as a tool to keep the CPI inflation figure within the range set by the Treasury.
The Bank of England is also the Lender of last resort for U.K. financial institutions that are in distress e.g. Northern Rock.
The Bank of England is a member of the Tripartite agreement along with the Treasury and FSA.
See also
- If house prices crashed, would my building society savings be safe? Bank of England response to a question possed by a reader before the run on the Northern Rock Bank.
- Moral hazard
- Financial Crisis