The Bank will initiate a new system based on averaging with voluntary reserves remunerated at the Bank's repo rate. A timetable for the changes will be announced after further consultation with the market. The Governor said:
"These proposals represent a big step forward for the Bank and for the sterling money markets. I am grateful to all those who have responded so thoughtfully and constructively to our consultation. The new framework will, I believe, make our money market operations more open, accessible, transparent and effective, and bring the market itself more closely in line with best international standards."
Press release