Update to lending and deposit spread of the Operational Standing Facility – Market Notice 8 December 2025
Why this matters
This regulatory update from the Bank of England is relevant to banks, wealth managers, and asset managers as it announces changes to the Operational Standing Facility, which is a key part of the central bank's monetary policy framework. The update impacts lending and deposit spreads, which are important for firms' treasury and liquidity management. The changes also relate to prudential requirements, operational resilience, and market surveillance considerations.
AI-generated classification rationale, not a full analysis. Verify with the original BoE source before acting. Full disclaimer.
What the BoE said
In line with the Bank's transition to a repo-led, demand-driven operational framework for providing reserves, the Bank is today announcing a reduction in the spread to Bank Rate of the Operational Standing Facility (OSF). This Market Notice confirms the new, recalibrated spread of the OSF at Bank Rate +15bps for the…
Extract from BoE . Read the full notice at the source for the authoritative text.
Context
Bank of England (BoE) — UK central bank overseeing monetary policy and financial stability. We track 247 updates from them.
Financial services regulation in the UK, primarily overseen by the FCA and PRA. Browse all United Kingdom updates.
This update is classified under Prudential / Capital Requirements, Operational Resilience / Outsourcing, Market Abuse / Surveillance and Banking & Credit.