What is the primary objective of the Bank of England?

The primary objective of the Bank of England is to maintain monetary and financial stability, which is crucial for the overall health of the economy. This includes setting interest rates to help control inflation and managing the country's currency and reserves to ensure a stable financial environment. By focusing on these aspects, the Bank aims to provide a stable framework that supports sustainable economic growth, fosters trust in the financial system, and protects consumers and businesses from financial shocks.

In contrast, while trade policies, public expenditure control, and assistance to local governments are important for overall economic management, they do not fall under the primary responsibilities of the Bank of England. Its specific mandate centers on the stability of the monetary system and broader financial markets, which in turn supports the economy as a whole.