The Bank of England is the UK's central bank. It began life in 1694 as a private bank set up by London merchants as a vehicle to lend money to the government and to deal with the national debt. That makes it the second-oldest central bank still in operation (the oldest is the Swedish central bank, which was set up in 1668). In 1946, it was nationalised.
It has a number of roles including overseeing the operation of the Royal Mint, which issues sterling notes and coins but its most important and high profile is to oversee monetary policy with the goal of maintaining financial stability in the UK.
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Index-linked giltsGlossary Index-linked gilts are sterling bonds issued by the Bank of England and listed on the London Stock Exchange, introduced to act as a hedge against inflation for pension funds.
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Monetary policy
Glossary Monetary policy is about exercising control over the money supply (the amount of money circulating in the economy) with the aim of influencing the economy.
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Money supply
Glossary Money supply is simply the amount of money available in the economy.