Reform of the Bank of England's Operations in the Sterling Money Markets

The Bank of England is today announcing the result of its review of its official operations in the sterling money markets.
Published on 22 July 2004

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."

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