UK politicians consider changing BOE interest payments to commercial banks, with Reform UK proposing to scrap them, potentially saving £35bn annually.
UK politicians consider changes to Bank of England (BOE) interest payments to commercial banks, with Reform UK's radical proposal to scrap them, potentially saving £35bn annually. This move aims to generate fiscal headroom amidst the nation's largest annual borrowing spree. Concerns arise over monetary policy transmission and potential cost to lenders, who earned £9.23bn last year from BOE reserves.
June 13, 2024
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