Bank of England (BoE)
Bank notes: October to December 2025
A round-up of news and salient issues that have affected central bankers in the past three months
BoE launches system-wide test on private markets
Second ever exploratory scenario to include major asset managers; results expected in early 2027
BoE lowers capital requirements for banks
Governor says move reflects sector’s evolution as institution publishes latest fin stab report
Synchronisation can support tokenised securities settlement – BoE
But central bank says it is unclear whether it outperforms unified ledger
BoE’s Pill focused on ‘nominal momentum’ in UK economy
Chief economist says inflation dynamics seem to have changed, but there is a lot of noise in the data
How generous is the UK’s new deposit insurance limit?
BoE’s decision to raise limit to £120,000 marks first change in eight years
BoE paper highlights ‘cost-of-carry’ channel of monetary policy
High inventory levels can boost transmission, authors say
BoE, MAS and BoT to test synchronised FX settlement
Project will use ‘synchronisation operator’ to achieve atomic settlement
BoE proposes changes to systemic stablecoin regime
Breeden says aim is to ‘build trust’ as issuers no longer have to hold 100% of reserves at bank
Reform UK’s BoE plans dismissed as ‘Trump-lite’
Former Bank of England officials unconvinced by proposals to fire current governor, change MPC and add growth remit
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
Bailey switches sides as BoE holds at 4% in 5–4 decision
Members’ views, published for first time, show disagreement around staff’s central projection
AI models ‘know more than they say’ – BoE paper
Tapping into ‘hidden states’ of large language models can improve data processing, authors claim
Is independence compatible with climate action?
Lessons from China indicate relationship between governments and central banks may need to change, argues Mathias Larsen
Stress-test transparency: how much is too much?
The transparency drive to disclose bank stress-test results comes with costs
Trade fragmentation not always inflationary – BoE study
Tariffs influence prices based on how sudden the shock is and how demand adjusts, researchers say
Bailey defends BoE’s internships for black applicants
Governor says internships are open to all, after politicians say programme is “discriminatory”
BoE considering new form of offline payments for UK
Phase two of digital pound work to start next month, as Bailey softens stance on stablecoins
BoE’s Woods rejects call to exempt gilts from leverage rule
Bank capital regime must account for sovereign bonds’ interest rate risks, PRA chief says
BoE plans system-wide test on private credit risks
Bank aims to probe market after First Brands and Tricolor collapses raise alarms about subprime lending
Venetian lessons for today’s central bankers
Loose money and lost credibility in 17th century city state provide a cautionary tale about the importance of international investor confidence, argues Biagio Bossone