Which entity is responsible for monetary policy in the UK?

The Bank of England is the entity responsible for monetary policy in the UK. It plays a crucial role in maintaining price stability and managing inflation, which are key components of the country’s economic health. The Bank uses various tools, such as setting interest rates and influencing the money supply, to achieve its monetary policy objectives. This function is central to fostering a stable economic environment, which is essential for encouraging growth and employment.

Other entities mentioned have distinct roles that do not pertain to the formulation of monetary policy. For instance, the Financial Conduct Authority primarily focuses on regulating financial markets and protecting consumers. The Prudential Regulation Authority oversees the financial stability of financial institutions to ensure they can withstand economic shocks. The Office for National Statistics, while crucial for providing economic data and statistics, does not set monetary policy. Hence, it is the Bank of England that holds the central responsibility for monetary policy in the UK.