By Adrian Hilton of the Bank's Sterling Markets Division.
Sterling institutional money market funds have, over the past five years, become an important feature of the sterling money market. This article looks at the characteristics of such funds and the instruments they invest in. It recognises that the growth of sterling institutional money market funds has the potential to change the flow of funds in the sterling money markets and to alter the composition of banks' balance sheets, but has no material implication for the implementation of monetary policy.
Sterling money market funds