Minutes of the Money Market Committee meeting – June 2026
The Money Markets Committee is a forum for market participants and authorities to discuss the UK unsecured deposits and funding market and securities lending and repo markets.
Central banks
UK financial regulators to begin overseeing Critical Third Parties announced by HM Treasury
The Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority will start overseeing the first Critical Third Parties on Monday 13 July 2026, following designation by HM Treasury.
A theory of bank liquidity requirements
We develop a general equilibrium theory of financial intermediation and its implications for liquidity regulation. The model is built around an agency problem arising from leveraged intermediation: banks finance loan origination with deposits and face moral hazard in risk management, while holding cash mitigates these incentives at the cost of foregone investment returns. Liquidity demand therefore emerges endogenously from incentive considerations rather than from exposure to exogenous funding shocks.
Minutes of the UK Money Markets Code Sub-Committee – June 2026
The Money Markets Committee is a forum for market participants and authorities to discuss the UK unsecured deposits and funding market and securities lending and repo markets.
Letter from the Governor to Joe Powell MP
Letter from the Governor
IFDP Paper: Multi-Plant Firms, Variable Capacity Utilization, and the Aggregate Hours Elasticity
Domenico Ferraro, Giuseppe Fiori, and Damian PierriWe develop a business cycle model with perfectly competitive product and labor markets in which production requires a minimum labor input, generating endogenous capacity utilization. The aggregate production function is kinked, featuring constant returns to scale below capacity—typically in recessions—and decreasing returns at capacity in expansions.
Statistical Notice 2026/07 - Bank of England Levy: Notification Document Levy Year 2026/27
Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder
How do economies with open labour markets work? The role of temporary migration in the European Union
This paper studies how temporary migration affects macroeconomic fluctuations and the conduct of stabilisation policies using a two-country DSGE model with search-and-matching frictions and endogenous cross-border labour mobility. The analysis shows that migration responds endogenously to both labour market conditions and exchange rate movements, making it an important channel of cross-country adjustment. Labour mobility alters the transmission of shocks in three main ways.
FEDS Paper: Capturing Heterogeneity: Machine Learning Approaches to Implied Volatility Forecasting
Hyung Joo Kim and Dong Hwan OhDespite documented heterogeneity in volatility dynamics across the option surface, standard implied volatility forecasting models apply homogeneous parameters throughout. We introduce a machine-learning framework that uses regression trees to partition the surface along both moneyness and maturity dimensions, identifying data-driven regions where distinct forecasting models perform best.
Financial Policy Committee Record – July 2026
Our Financial Policy Committee (FPC) meets to identify risks to financial stability and agree policy actions aimed at safeguarding the resilience of the UK financial system.
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