Former Prime Minister Gordon Brown’s government granted the Bank of England operational independence over monetary policy in 1997.
The Bank of England is owned by the British government, with the bank’s capital held by the Treasury Solicitor for Her Majesty’s Treasury.
Although the Bank of England is owned by HM Treasury, they carry out its responsibilities independently.
Established in 1694 as a private bank to raise funds for the government, the Bank of England also functioned as a deposit-taking commercial bank.
In 1844, the Bank Charter Act gave it a monopoly on issuing banknotes in England and Wales.
The United Kingdom government nationalized the Bank of England in 1946 following the conclusion of World War II.
The Bank of England has been responsible for setting the UK’s benchmark interest rate since May 6, 1997, when the government transferred its authority over United Kingdom monetary policy to the bank. The responsibilities also include financial stability and regulating firms such as banks and insurers.