The setting of the overnight interest rate is the prerogrative of the Bank and not the cabinet. Responsibility for that was transferred from the Exchequer to the Bank about two years ago.
Monetary policy operates by influencing the cost of money.
The Bank sets an interest rate for its own dealings with the market and that rate then affects the whole pattern of rates set by the commercial banks for their savers and borrowers. The decisions on interest rates are announced at 12 noon immediately following the Thursday meeting. The announcement of the outcome is made on the wire services' Bank of England pages and on the website's Home Page . The Press Release announcing the decision is added to the Website's Press Release page. The Government recognises the independence of the Bank and its responsibility for monetary policy matters and intends to respect the Bank's independence as provided by statute.