BoE reserves framework drawn into political arena

Minor party’s proposal to axe interest on reserves highlights BoE’s costly operating framework

Bank of England

The Bank of England’s (BoE) framework for controlling the short-term interest rate has become an issue in the UK general election, after one party proposed axing interest on reserves.

The Reform UK party included the policy in its manifesto, published on June 10, as a way of raising additional funds for the Treasury. The party claimed ceasing interest payments to banks could save £30 billion–40 billion ($38 billion–51 billion) per year.

The proposal is unlikely ever to be executed. Reform, led by

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account