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    ifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amou
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    1. It issues notes and coins. The Bank of England is the sole issuer of notes and coins in the UK. In theory you could take a ?10 note to the Bank of England and ask for you equivalent sum of Gold. I don't know whether they would take kindly to such requests but in theory that is how they maintain confidence in notes and coins as a medium of exchange

    2. Managing the government’s debt. National Debt in the UK At the end of 2005/6 general government debt was ?529.1 billion, equivalent to 42.1 per cent of GDP. [1] To manage the government debt the bank of England sell bonds and gilts to the private sector. Usually bonds have a lifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amou

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    d ask for you equivalent sum of Gold. I don't know whether they would take kindly to such requests but in theory that is how they maintain confidence in notes and coins as a medium of exchange

    2. Managing the government’s debt. National Debt in the UK At the end of 2005/6 general government debt was ?529.1 billion, equivalent to 42.1 per cent of GDP. [1] To manage the government debt the bank of England sell bonds and gilts to the private sector. Usually bonds have a lifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amou

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    nd coins as a medium of exchange

    2. Managing the government’s debt. National Debt in the UK At the end of 2005/6 general government debt was ?529.1 billion, equivalent to 42.1 per cent of GDP. [1] To manage the government debt the bank of England sell bonds and gilts to the private sector. Usually bonds have a lifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amou

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    n, equivalent to 42.1 per cent of GDP. [1] To manage the government debt the bank of England sell bonds and gilts to the private sector. Usually bonds have a lifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amou
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    ifetime of about 30 years. In order to encourage people to buy government debt they need to offer an attractive interest rate. Interest payments on UK debt amount to nearly ?30 billion a year

    3. Managing Monetary Policy. In particular the MPC Monetary Policy Committee is responsible for changing interest rates in order to keep inflation within the governments target of CPI 2% +/-1. To achieve this inflation target the MPC meet every month and examine future inflation trends. If inflation looks to be increasing then they will vote to increase interest rates in order to dampen demand. They don't directly set mortgage rates but indirectly they do influence mortgages through the setting of interest rates.

    4. The Bank of England actually set the base rate of “repo” rate. This is a r

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