I’ve been studying about monetary policy comittee.

  • $\begingroup$ Probably, but they're zero right now. $\endgroup$ – Fizz May 19 '19 at 14:02

Yes, the Bank of England is the regulatory authority in the UK which sets reserve requirements for commercial banks.

A short overview of the Bank of England's history regarding money supply and reserve requirements can be found here: http://qed.econ.queensu.ca/noftp/faculty/bergin/econ320/BOE.pdf

More information on how commercial banks hold reserves can be found in the famous Red Book: https://www.bankofengland.co.uk/-/media/boe/files/sterling-monetary-framework/annual-report-2017-18

Although the UK does not at present have a minimum reserve requirement, commercial banks nonetheless must be well capitalised in accordance with BoE regulation on the counter-cyclical capital buffer. (I mention this because one reason central banks have minimum reserve requirements is also in relation to capital requirements/buffering, as well as traditional liquidity and rate setting reasons.)


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