§ Mr. Salmond
To ask the Chancellor of the Exchequer what are the core purposes of the Bank of England; and if he will make a statement.
§ Mr. Nelson
[holding answer 21 February 1995]: The Bank of England defines its core purposes as follows.
As the central bank of the United Kingdom, the Bank of England's overriding objective is to maintain a stable and efficient monetary and financial framework for the effective functioning and development of the economy. In pursuing this goal, it has three core purposes: maintaining the integrity and value of the currency; maintaining the stability of the financial system, both domestic and international; and seeking to ensure the effectiveness of the UK's financial services.
The three core purposes relate primarily to the UK, but achieving them requires the bank to monitor international developments and co-operate with other monetary authorities and international organisations.