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Minutes

Item 1 – Welcome

The Chair thanked members for attending and confirmed that the Minutes of the Money Markets Committee (MMC) September 2025 meeting had been published on the Bank’s website.^{footnote [1]}

The Chair welcomed Natasha Vowles to her first meeting as a new member of the MMC and welcomed those who were attending as part of the Bank’s Meeting Varied People (MVP) initiative.

Item 2 – Update on the balance sheet transition and the Operational Standing Facility’s recalibration

The Chair provided a brief summary of the recently published insight article ‘Learning to navigate bumps in the road’^{footnote [2]} in which the authors provide an update on the Bank of England’s Sterling Monetary Framework (SMF) facilities and balance sheet transition.

The Chair signposted the recalibration of the pricing of the Operational Standing Facility (OSF) to Bank Rate +/- 15bps (from +/- 25bps)^{footnote [3]}. This recalibration represents a natural next step in the Bank’s balance sheet transition and will allow firms to respond better to their liquidity needs as they arise between the Bank’s regular market-wide operations. This will help to ensure that short-term market interest rates remain anchored to Bank Rate whilst limiting the risk of private market disintermediation.

David Bailey, Executive Director for Prudential Policy of the Prudential Regulation Authority (PRA), emphasised to the Committee that the positions of the Bank of England and PRA with respect to usage of the Bank’s SMF facilities were completely aligned. He joined the Chair in stressing that all of the Bank’s SMF facilities – including the on-demand bilateral facilities (OSFs and Discount Window Facility) and the Bank’s market-wide facilities – remain ‘open for business’ and should be used by SMF participants for the purposes of liquidity management from the perspective of both the Bank of England and the PRA.^{footnote [4]} David also noted that the PRA is in the process of reviewing its policies to make sure that they fully support this message; any changes would be subject to consultation as part of the PRA’s usual policy process.

Item 3 – Discussion on market conditions

A member of the Committee provided a presentation covering recent themes and conditions as they related to UK money markets. The presentation noted, and the Committee subsequently discussed: (1) more widespread usage of the Bank’s Short-Term Repo (STR) and Indexed Long-Term Repo (ILTR) facilities; (2) an acknowledgement that the pace at which aggregate reserves are expected to drain is likely to continue slowing as we approach the Preferred Minimum Range of Reserves (PMRR); and (3) widespread consensus that money market conditions going into year-end were expected to be calm and orderly.

One member highlighted developments in the difference between the SONIA interest rate benchmark and Bank Rate. It was noted that the difference between the two rates had continued to narrow and that the move was broad-based. The Committee will continue to monitor developments closely.

The Committee also discussed developments in the demand and supply dynamics in the UK Treasury bill market. Members welcomed the UK Debt Management Office’s announcement that they would launch a consultation in January 2026 on expanding and deepening the Treasury bill market.^{footnote [5]}

Item 4 – Discussion on systemic stablecoins

A member of Bank staff provided a summary presentation of the Bank’s recently published Consultation Paper (CP) which outlines a proposed regulatory regime for sterling-denominated systemic stablecoins.^{footnote [6]} The Bank continues to welcome responses from a wide range of stakeholders; the consultation closes on 10 February 2026.

The Committee engaged in discussion around the proposals and stressed the importance of the initiative for the future of UK money markets. It was highlighted that a sterling-denominated regime should exist complementary to managing risks from non-sterling stablecoins and should ensure interoperability, end-user protection and issuer viability. The Committee will continue to monitor developments as the proposals move forward.

Committee Attendees

Committee members

James Winterton – Association of Corporate Treasurers

Cristiano Guidi – Bank of America Merrill Lynch

Gareth Jones – Barclays

Emma Cooper – BlackRock

Sara Carter – CME Group

Inna Shaykevich – Goldman Sachs

James Murphy – HSBC

Chris Brown – Insight Investment

Tony Baldwin – LCH

Ina Budh-Raja – ISLA

John Wherton – L&G

Scott Creed – Lloyds Bank

Nina Moylett – M&G

Nic Erevik – Newcastle Building Society

Chirag Patel – Rabobank

Romain Sinclair – Société Générale

Natasha Vowles – Tesco

John Argent – Tradition

MVP attendees and Observers

Agne Stengeryte – Bank of America Merrill Lynch

Ludovic De Beaucorps – Bank of America Merrill Lynch

Farid Anvari – CME Group

Paul Canty – DMO

Alan Barnes – FCA

Fearghal Burke – Rabobank

Bank of England

Matt Roberts-Sklar (Chair)

David Bailey

Simon Dolan

Callum Ashworth

Jack Welling

Kirstine McMillan

Grainne McGread

Tom Smith

Ming Au

Pavel Chichkanov

Apologies

Gordon Lowson – Aberdeen

Marije Verhelst – Euroclear

Edward Bond – J.P. Morgan

Alan Williams – Santander UK