Bank of England Money Market Committee Reviews Stable Funding Conditions and RTGS/CHAPS Extension Plans
On 25 September 2026, the Money Market Committee (MMC) of the Bank of England convened at 20 Moorgate, London. The members observed that money market operations remained stable with sufficient liquidity, despite challenges from bond market fluctuations and geopolitical tensions. They deliberated on potential changes to leverage ratios and emphasized the competition for both retail and corporate deposits. Bank representatives provided updates on the extension of RTGS and CHAPS settlement hours, in line with a supportive Consultation Paper from May 2026, while expressing concerns regarding liquidity facilities outside regular hours. The Chair shared insights on repo facilities and the Monetary Policy Committee's decision on Quantitative Tightening in September. The Committee also reviewed Euroclear UK & International's MiniCREST contingency plan, with a follow-up scheduled for December, and acknowledged a report from the Association of Corporate Treasurers.
Key facts
- The MMC meeting took place on 25 September 2026 from 10am to 11.30am at the Bank of England, 20 Moorgate, London, EC2R 6DA.
- Members noted that money markets continued to function smoothly with ample liquidity and stable cross-currency funding conditions.
- The Committee discussed the Financial Policy Committee's proposed leverage ratio changes, welcoming the direction but noting difficulty in predicting material increases in leverage or balance-sheet deployment.
- Bank staff updated on extending RTGS and CHAPS settlement hours, with feedback to the May 2026 Consultation Paper broadly supportive of extending existing operating days first.
- Members highlighted practical considerations for extended settlement hours, including liquidity facilities outside current hours and operational resilience for smaller firms.
- The Chair updated on the Monetary Policy Committee's September decision on Quantitative Tightening and related announcements by the Bank and HM Treasury.
- The Sterling Money Markets Code Sub-Committee is preparing its next update, planned for publication in 2027, and invited expressions of interest for product-specific working groups.
- The Committee noted a report by the Association of Corporate Treasurers on promoting the UK as a location for corporate treasury centres.
Entities
Institutions
- Bank of England
- Money Market Committee
- Monetary Policy Committee
- Financial Policy Committee
- HM Treasury
- Euroclear UK & International
- Association of Corporate Treasurers
- Bank of America Merrill Lynch
- Insight Investment
- Newcastle Building Society
- Royal Bank of Canada
- Société Générale
- Prudential Regulation Authority
- Barclays
- Goldman Sachs
- HSBC
- LCH
- L&G
- Lloyds Bank
- M&G
- Rabobank
- Santander UK
- Tesco
- Tradition
Locations
- London
- United Kingdom
- Moorgate
- Threadneedle Street
- EC2R 8AH