Summary of Quantitative Tightening and Reserves Workshop

The questions under discussion were:

• Now that QT has commenced, what have we learnt so far about the appropriate speed, market reaction?
• At what level of reserves relative to GDP should we think of as the target in some broad sense?
• Do losses for the APF matter for monetary and fiscal policy setting?
• What are the arguments for continuing to pay Bank rate on all reserves?
• If we wanted to move to a system of tiered reserves, how would that affect the Bank of England’s monetary operating policy?