Exchange of letters between the Governor and the Chancellor regarding CPI Inflation - September 2025
Exchange of letters between the Governor and the Chancellor
Financial institutions
Bank Rate maintained at 4% - September 2025
The Bank of England’s Monetary Policy Committee is responsible for making decisions about Bank Rate.
Monetary Policy Committee dates for 2026
2026 confirmed dates
Asset Purchase Facility: Gilt Sales – Market Notice 18 September 2025
At its meeting ending on 17 September 2025, the MPC voted to reduce the stock of gilts held in the Asset Purchase Facility (APF) for monetary policy purposes by £70 billion over the next twelve months. This Market Notice sets out the schedule for sales in Q4 2025 of gilts held in the APF for monetary policy purposes.
The importance of the SSM’s fitness and propriety work for banks’ performance – evidence from 10 years of SSM work
In this paper, we empirically investigate how suitability concerns detected by the SSM in the fitness and propriety of management body appointees impact the performance of European banks in the period 2014-2023. We provide evidence that management body appointees where the assessment of the supervisory authorities raised concerns, had a negative impact on the bank’s future performance. The negative effect can be attributed to appointees where the supervisory assessment revealed such severe concerns that ancillary measures were imposed.
The importance of the SSM’s fitness and propriety work for banks’ performance – evidence from 10 years of SSM work
In this paper, we empirically investigate how suitability concerns detected by the SSM in the fitness and propriety of management body appointees impact the performance of European banks in the period 2014-2023. We provide evidence that management body appointees where the assessment of the supervisory authorities raised concerns, had a negative impact on the bank’s future performance. The negative effect can be attributed to appointees where the supervisory assessment revealed such severe concerns that ancillary measures were imposed.
Stylized facts in money markets: an empirical analysis of the eurozone data
Using the secured transactions recorded within the Money Markets Statistical Reporting database of the European Central Bank, we test several stylized facts regarding the interbank market of the 47-largest banks in the eurozone. We observe that the surge in the volume of traded evergreen repurchase agreements followed the introduction of the LCR regulation and we measure a rate of collateral re-use consistent with the literature.
The effects of monetary policy on banks and non-banks in times of stress
This paper investigates the effects of monetary policy on banks and non-bank financial institutions (NBFIs), with particular attention to the role of financial stress. We use high-frequency identified monetary policy shocks and state-dependent local projections to capture non-linear responses across financial sectors. Drawing on aggregated balance sheet data, including total assets, debt securities, and loans, we find that monetary tightening leads to broad-based contractions in total assets and debt holdings, with particularly pronounced effects for banks and investment funds.
Stylized facts in money markets: an empirical analysis of the eurozone data
Using the secured transactions recorded within the Money Markets Statistical Reporting database of the European Central Bank, we test several stylized facts regarding the interbank market of the 47-largest banks in the eurozone. We observe that the surge in the volume of traded evergreen repurchase agreements followed the introduction of the LCR regulation and we measure a rate of collateral re-use consistent with the literature.
The effects of monetary policy on banks and non-banks in times of stress
This paper investigates the effects of monetary policy on banks and non-bank financial institutions (NBFIs), with particular attention to the role of financial stress. We use high-frequency identified monetary policy shocks and state-dependent local projections to capture non-linear responses across financial sectors. Drawing on aggregated balance sheet data, including total assets, debt securities, and loans, we find that monetary tightening leads to broad-based contractions in total assets and debt holdings, with particularly pronounced effects for banks and investment funds.
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