The bank said it will maintain its rediscount rate - charged to commercial lenders for 10-day loans - at 1.375 percent.
A series of recent interest rate cuts have brought down the rediscount rate and the accommodation rate from last year's highs of 4.75% and 5.125%, respectively.
the bank does not rediscount eligible bills back to the market in such cases
The central bank has cut it key rediscount rate 62.5 basis points since December.
eligibility for rediscount at the Bank of England
The rate cut, the 14th in the past two years, reduced the key rediscount rate from 1.875 percent to 1.625 percent, effective today.
the Bank does not announce its rediscount rate
The cuts, effective from Wednesday, will bring down the rediscount rate to a record low 2.75% from 3.25%.
Here, we would presume he has in mind the ECB monetizing private debt by rediscounting existing private liabilities, or using them in open market operations.
They can be kept in the portfolio as an earning asset, or they can be liquidated ( rediscounted ) on the shortest notice without any loss of value.