In the UK how do the Bank of England affect interest rates?

I was just reading that the interest rate is 0.5% according to the Bank of England.

I can't understand this, because interest rates vary from bank to bank and depending on the type of loan or saving ie. Bond, current account, overdraft or mortgage.

Do the Bank of England set a guide line, or a minimum interest rate? I would just like to be able to understand how if for example the Bank of England increased the interest rate to 1%, how would the interest rates of HSBC for example be affected?

Thanks

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