Launch of BoE's new framework

The Bank of England launched its new framework for the implementation of monetary policy to modernise sterling money markets on Thursday 18 May.

This modernisation brings a fundamental change to the way interest rate decisions made by the Monetary Policy Committee are implemented and to the way that banking system liquidity is managed.

From today, for the first time in its history the Bank is paying interest on reserve balances held by banks and building societies. They now target average balan

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