Minutes of the Money Market Committee meeting – June 2026

Time: 10am – 12pm | Location: Virtual Microsoft Teams meeting.

The Chair thanked members for attending and confirmed that the Minutes of the Money Markets Committee (MMC) March 2026 meeting had been published on the Bank’s website.footnote [1]

Due to extreme weather condition warnings, the June 2026 MMC meeting was held virtually. The Chair thanked members for their flexibility and understanding.

Item 2 – Discussion on market conditions

The discussion opened with members providing perspectives on recent developments in sterling secured and unsecured money markets. Overall, money markets were described as functioning well, with resilience in funding conditions supported by strong cash availability, including from central bank facilities and, to a lesser extent, corporates. This had contributed to reduced volatility and relatively flat funding curves.

In the gilt repo market, conditions were generally stable, although some variability in rates had been observed around May month-end and subsequently throughout June. This was partly attributed to typical reporting period dynamics, alongside some frictions that may have modestly affected liquidity recycling. Members also noted that there were some indications of reduced hedge fund leverage globally following recent geopolitical developments, with differing drivers noted across jurisdictions, though this may have partially reversed more recently.

Unsecured money markets continued to function smoothly, with access to funding remaining available across tenors, although spreads at longer maturities remained modestly wider than before the Middle East conflict. Some members noted that equity financing levels have continued to increase, though emphasised the degree of segmentation in the allocation of balance sheet across asset classes.