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

Discuss the section that the brink of England plays within the UK economy.The bound of England was founded in 1694 to act upon the government asits desireer and debt-manager. Since it was founded, its role hasdeveloped and evolved into what we have today, with its role centredon the management of the nations monetary unit, the conquer and it isthe infrastructure of the UKs financial system.(http//www.bankofengland.co.uk/about/history/index.htm visited 27thOctober 2005 lead updated 12th June 2002 by Anon)The history of the Bank is one of great cheer in this country, butalso of continuing relevance and importance to the bank today. Eventsthat have taken place within the last three blow years have helpedto shape 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 21stcentury. Much of the history of the bank runs in tandem to thefinancial and e conomic history of this country, and often too the governmental history of the UK more generally.There 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 decree of King William and Queen Mary. Over the yearsthough, various progressions have been make with the introduction ofloans, interest rates and various other things which make up the Banktoday.The Bank of England is controlled by the level of interest rates itsets via the employment of short term interest rates. This iscontrolled by the Monetary Policy citizens committee (MPC). If the MPC thinkthat the demand is set to rise too fast, consequently they get out increase theinterest rate, but if they think demand is growing at a slow rate, ormaybe even possibly falling, they go away then reduce the interest rate.This is known as the transmission mechanism.The MPC is make up of nine members. Five of them are from within theBank of England and accommodate the Governor and two Deputy Governors, theother four are called away members and are appointed by theChancellor. At each monthly confrontation the members vote on what theybelieve 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 diametric internal consumer demand changes that willaffect the general public. Firstly at that place is consumer borrowing. Manyconsumers use this method to borrow money in the make up of credit cards