The Bank of England
(BoE) is responsible for determining UK monetary policy, like setting benchmark interest rates. BoE rate decisions are made by its Monetary Policy Committee (MPC). The BoE changing or communicating a future change to official rate targets can have a material impact on domestic bond yields, like the 10-year Gilt. If the Bank of England were to cut interest rates, for example, it would likely send UK bond yields lower and fuel weakness across GBP price action.