BoE’s Bailey sees no monetary reason for reserves shake-up

Bank of England Governor Andrew Bailey said on Tuesday there was no monetary policy reason to reduce or restructure the way the central bank pays interest on its reserves held by commercial banks.

“In my view, there is not a monetary reason, a monetary policy reason that is, for varying that. I think that any decision to vary that is a fiscal policy decision,” Bailey told the Economic Affairs Committee from the House of Lords.

He said the BoE had not had a conversation with the finance ministry about it.
Source: Reuters (Reporting by UK bureau, writing by Andy Bruce; editing by William James)