UK will not cut interest payments of Banks-Treasury
2022.12.12 12:32
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UK will not cut interest payments of Banks-Treasury
Budrigannews.com – Following suggestions that this should be taken into consideration by some former BoE deputy officials, the Treasury’s top official stated on Monday that Britain’s finance ministry has no plan for the Bank of England to reduce the amount of interest it pays to banks.
After Anthony Browne, a member of the Treasury Committee of Parliament, asked if the Bank of England should stop paying interest on some of the reserves that banks hold, permanent secretary James Bowler stated, “There will be no plans to do that.”
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Charles Bean and Paul Tucker, both former BoE deputy governors, have suggested that the BoE should reevaluate the manner in which it pays interest on the approximately 950 billion pounds of reserves that banks hold.
Andrew Bailey, the BoE’s current governor, has stated that there is no monetary policy justification for altering the current strategy.
