Regulatory Alerts2026-03-27
Update to Discount Window Facility Pricing – Market Notice 27 March 2026
The Bank of England has announced an immediate simplification and reduction in Discount Window Facility pricing, replacing the previous variable schedule with fixed rates of plus 15 basis points for Level A collateral, plus 25 basis points for Level B, and plus 50 basis points for Level C. This change applies to all new drawings of gilts and reserves, aligning the facility with other Sterling Monetary Framework tools while preserving incentives for prudent daily liquidity management. To ensure same-day settlement, participants must pre-position sufficient collateral ahead of requests and continue completing regular small-scale test trades.
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