© Reuters. FILE PHOTO: A general view of the Bank of England building, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska//File Photo
LONDON (Reuters) – The Bank of England will not accept interference with the system of paying interest to banks from reserves issued by the central bank, BoE Chief Economist Huw Pill said on Thursday.
“From the Bank’s point of view, from a monetary policy perspective, we want to be able to set Bank Rate and have it transmit through the money market effectively,” Pill said at a conference hosted by King’s College London. “Anything that interferes with that is something that I think the Bank cannot accept.”