Bank Of England Swot Analysis

Bank of England 1. INTRODUCTION The Bank of England, formally the Governor and Company of the Bank of England, is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world, after the Sveriges Riksbank, and the world 's 8th oldest bank. It was established to act as the English Government 's banker and is still the banker for the Government of the United Kingdom. The Bank was privately owned by stockholders from its foundation in 1694 until it was nationalized in 1946. In 1998, it became an independent public organization, wholly owned by the Treasury Solicitoron behalf of the government, with independence in setting

First, we know that negative interest rates help stimulate investment demand. Interest rate is the price of capital, negative interest rate means that low-cost access to funds, naturally conducive to stimulating investment; second, negative interest rates can stimulate consumption. The third negative interest rate can stimulate the commercial banks to expand credit, such as credit (such as credit), the negative impact of the negative interest rate on the supply of goods to the residents, the negative means that the deposit is not cost-effective, more rational choice is to hold funds for daily consumption, thereby stimulating consumption; Funds can effectively flow into the real economy, will naturally stimulate economic growth. In addition, the negative interest rate means that monetary funds in the domestic income is negative, monetary funds can be effectively in the international circulation of the case, negative interest rates will reduce the attractiveness of domestic currency for international investors, reduce international capital inflows, stimulate more To the international market, reduce the level of their exchange rates, thereby optimizing the terms of trade of their exports. So we can guess the British Central Bank to implement negative interest rate policy, the pound will depreciate. At the same time, the scale of domestic investment to expand, increase output, increase consumer demand, but also can expand imports and exports, while deflationary pressures, reduce unemployment, in order to achieve the purpose of stimulating economic