Central Banks and Monetary Policy (AQA A-Level Economics): Flashcards

National institution providing financial services to govt & banks

1997

2% (with ±1% margin)

8 times

Interest rate BoE pays banks on their deposits at BoE

$\text{AD} = C + I + G + (X - M)$

Floor at/near 0% where Bank Rate cannot be cut further

BoE buying financial assets with newly created money

£895 billion

$\text{nominal rate} - \text{inflation rate}$