Political party calls on BoE to stop paying interest on banks’ reserves
Former bank official says Reform UK’s proposal would amount to unacceptable “breach of faith”
A rising political party in the UK has renewed its criticism of the Bank of England for paying out large sums in interest to commercial lenders on their reserves held with the central bank.
Richard Tice, deputy leader of Reform UK, wrote to the BoE governor Andrew Bailey on June 8 calling on the bank to stop paying out interest on reserves it had acquired from lenders through quantitative easing (QE).
His letter came ahead of chancellor of the exchequer (chief finance minister) Rachel Reeves’s
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