Rate Brief — Currencies and central banks, read from the decision itself

Securitising banks cut lending harder after a tightening, not less

ECB Working Paper 3289 finds securitisation amplifies the bank lending channel, driven by synthetic deals and Significant Risk Transfers - and borrowers cannot substitute the lost supply.

Serguey Asael Shinder25 Sep2 min read

Sterling

The Bank of England borrows to fund its own currency reserves

A market notice on 21 September runs under the framework set a year ago: two benchmark issues a year, professionals only, and reserves that are the Bank's own rather than the Treasury's.

Victoria Shinder22 Sep2 min read