Minutes of the Money Market Committee meeting – September 2025

Minutes

Item 1 – Welcome

The Chair thanked members for attending and confirmed that the Minutes of the Money Markets Committee (MMC) June 2025 meeting had been published on the Bank’s website.^{footnote [1]}

The Chair welcomed Gareth Jones and Sara Carter to their first meeting as new members of the MMC, and those who were attending as part of the Bank’s Meeting Varied People (MVP) initiative. The Chair also welcomed Kash Chundoo to the Committee Secretariat.

Item 2 – Discussion on market conditions

A member of the Committee provided a presentation on recent developments in gilt and UK money market conditions.

The presentation and subsequent discussion highlighted that the UK gilt curve had remained resilient amidst the global steepening trends in recent months. The discussion also considered the influence of inflation on the level of gilt curve relative to other jurisdictions.. Members noted that the Debt Management Office’s approach to shortening the weighted average maturity of issuance had helped manage supply pressures, though some liquidity challenges remained due to curve segmentation. Members also reflected on structural developments in the gilt market, including changes in demand and issuance trends.

Members noted that sterling money markets continued to function smoothly, supported by stable central bank pricing and increased usage of the Bank’s Short-Term Repo (STR) and Indexed Long-Term Repo (ILTR) facilities. Members observed that conditions across secured and unsecured markets remained robust, with improved transparency and broader participation. The upcoming UK Autumn Budget was highlighted as a contributor to market uncertainty.

Item 3 – Discussion on gilt repo market resilience in the context of the Bank’s Discussion Paper

The Bank provided an overview of its recently published Discussion Paper on “Enhancing the resilience of the gilt repo market”^{footnote [2]}, which explores the effectiveness and impact of a range of potential reforms to enhance the resilience of the UK gilt repo market, including greater central clearing and the introduction of minimum haircut for non-centrally cleared transactions. Feedback should be submitted to the Bank by 28 November 2025.

Members acknowledged the potential benefits of expanding central clearing, including how broader access might encourage wider market participation. However, they also emphasised the importance of designing solutions that reflect the diverse characteristics and requirements of different market participants. The discussion highlighted that further clarity on minimum haircuts would be useful.

Item 4 – Discussion on RT2 and CHAPS settlement hours in the context of the Bank’s Consultation Paper

The Bank provided an overview of its recently published Consultation Paper on the “Proposal to extend RT2 and CHAPS settlement hours (phase 1)”^{footnote [3]}. The proposed extension seeks to align the UK’s core payments infrastructure more closely with global standards, foster industry-wide cooperation, and support innovation, resilience and inclusivity. The deadline for responses to the consultation was 21 October 2025.

The Committee noted that while the proposal could offer benefits such as enhanced liquidity and improved access for international counterparties, it may also present some operational challenges. Members recognised the importance of maintaining work-life balance in rolling out any changes as well as ensuring that any changes do not disproportionately impact firms with more limited operational capacity. Discussion also noted that firms might need to consider implementing liquidity buffers to manage weekend demands as well as the impact this might have on firms with smaller balance sheets. Members also suggested that there would be benefit in providing use cases for the extended hours to help clarify the practical benefits of the proposal.

The Bank confirmed that it is exploring implementation options that support resilience and inclusivity and will continue to engage with stakeholders as part of the consultation process.

Item 5 – Sub-Committee updates

A member of the Committee provided a readout of the most recent meeting of the Securities Lending Sub-Committee, which met on 23 September^{footnote [4]}. Updates were provided on the UK T+1 settlement position in terms of readiness and testing as well as hybrid working practices.

Committee Attendees

Committee members

James Winterton – Association of Corporate Treasurers
Gareth Jones – Barclays
Emma Cooper – BlackRock
Sara Carter – CME Group
Marije Verhelst – Euroclear
Inna Shaykevich – Goldman Sachs
James Murphy – HSBC
Chris Brown – Insight Investment
Tony Baldwin – LCH
John Wherton – L&G
Scott Creed – Lloyds Bank
Nina Moylett – M&G
Chirag Patel – Rabobank
Alan Williams – Santander UK
Romain Sinclair – Société Générale

MVP attendees and Observers

Ross Barclay – DMO
Paul Canty – DMO
Alan Barnes – FCA
Andy Burgess – Insight Investment
David Hooker – Insight Investment
James McKerrow – Insight Investment
Michael Semaan – LCH
Nick Barnes – LCH

Bank of England

Matt Roberts-Sklar (Chair)
Vicky Saporta
Simon Dolan
Jack Welling
Callum Ashworth
Kash Chundoo
Yousif Taki
James Tulloch
Annalisa Stoddart
Bonnie Howard Yuliya Baranova
Cameron Brooks
Munalula Lisimba
Toby Davies
Paige Benattar

Apologies

Gordon Lowson – Aberdeen
Cristiano Guidi – Bank of America Merrill Lynch
Ina Budh-Raja – Bank of New York Mellon
Edward Bond – J.P. Morgan
Nic Erevik – Newcastle Building Society
John Argent – Tradition