According to its goals, the Bank of England sets its monetary policy to achieve the British Government’s target of keeping UK inflation at 2,0% level.
This is because the BOE thinks that a low and stable inflation is good for the UK’s economy and its main monetary policy aim.
The monetary policy undertaken by the BOE also supports the British Government’s other economic aims: growth and employment. Unlike the ECB, which has inflation as exclusive goal, the BOE has also an eye upon growth and employment targets. Sometimes, just like the US Federal Reserve, in the short term, the central bank needs to balance its target of low inflation with supporting economic growth and jobs.
Furthermore, every year, the Chancellor of the Exchequier sets out a framework under which the BOE has to set monetary policy. They send this to BOE’s Governor in a remit letter.