By Roger Clews of the Bank’s Markets Area.
In its money market operations, the Bank of England implements the interest rate decisions of its Monetary Policy Committee while meeting the liquidity needs of the banking system and thus contributing to its stability. The Bank has decided that it needs to upgrade the way in which it carries out these operations and has announced wide-ranging reforms to bring that about. This article describes the new system.
Implementing monetary policy: reforms to the Bank of England’s operations in the money market