London’s new model money markets

The Bank of England plans to make major changes to its method of implementing monetary policy by dealing in the sterling money market. The changes were outlined by Paul Tucker, an executive director of the Bank and the member of the monetary policy committee (MPC) responsible for policy implementation, in a speech on July 28 this year to mark the 15th anniversary of Lombard Street Research1.

The changes will align the implementation of monetary policy more closely with the formulation of monetar