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More glossary terms
- JOLTS (job openings and labor turnover survey)
- Earnings per share (EPS)
- Nasdaq composite
- Unit
- Value investing
Bank of England (BoE) definition
The Bank of England (BoE) is the UK’s central bank
What is the Bank of England?
The Bank of England (BoE) is the UK’s central bank. It plays a key role in supporting the stability of the UK economy by setting interest rates, controlling inflation, and helping to make sure the financial system runs smoothly.
What does the BoE do?
Its main jobs include:
- Setting the base rate: this influences borrowing costs for businesses and consumers. Raising the base rate can slow inflation, while lowering it encourages spending.
- Keeping inflation in check: the BoE aims to keep inflation around 2%, using tools like interest rates and bond-buying.
- Regulating banks: helping to make sure banks are financially resilient and the wider financial system remains secure.
When the Bank of England makes a big decision – like changing interest rates – it can affect everything from mortgage costs to savings rates across the country.
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.