Bank of England Money Market Committee Reviews Policy Adjustments and Market Conditions in March 2026 Meeting

The Money Market Committee convened at the Bank of England in London on March 27, 2026, from 2pm to 4pm. Chaired by Matt Roberts-Sklar, the session included new member Ian Williams from the Royal Bank of Canada and participants from the Meeting Varied People initiative. Vicky Saporta, Executive Director for Markets, detailed updates on the Sterling Monetary Framework, focusing on a shift to a repo-driven system and modifications to the Discount Window Facility. Pricing for the facility was adjusted to fixed spreads relative to Bank Rate: 15 basis points for Level A, 25 for Level B, and 50 for Level C, aiming to enhance accessibility while supporting daily liquidity management. Phil Evans of the Prudential Regulation Authority highlighted alignment with the Bank on liquidity framework usage, noting a consultation to modernize policies and encourage facility utilization during shocks. Discussions covered sterling money market conditions, with members observing resilience amid volatility, stable repo and unsecured rates, and inflows into money market funds. An update on CHAPS settlement hours indicated an extension to open at 01:30 from September 2027, with firms advised to evaluate benefits. The meeting emphasized collaborative efforts to maintain market stability and operational readiness.