LONDON, – British banks may choose to hold more reserve assets with Bank of England than previously thought, partly because of financial turmoil in the recent past, Bank of England Governor Andrew Bailey said on Monday.
“I expect the future level of reserves to fall from where it is today,” Bailey said in the text of a lecture to be delivered at Loughborough University in central England.
“I will go a bit further and say that my best guess today is that the demand for reserves by the banks will settle at a level higher than we would even in the recent past have expected. That may be for more than one reason, of which one may well be the lessons of last year,” he added. (Reporting by David Milliken and Andy Bruce)
