Help with interest rates...plz!?

What factors does the Bank of England consider when setting general rate of interest?

thanks=)!

Help with interest rates...plz!?exchange rate

The base rate calculations take into account the econmic indicators of the country. Industrial output, import/exports, consumer spending and house prices are just some of the factors that are used.

In addition to this, the gorvernment have set an inflation figure (of 2% I think) that the BoE has to try to stay near. If the economic indicators are close to 2% inflation then base rate interest remains the same. If inflation varies from 2%, the base rate is adjusted to try and correct the inflation rate.