Neil Kinnock has received a Treasury explanation of how interest is paid on reserves held at the Bank of England, following his questions about the arrangement and the information available to Parliament.
The Labour peer tabled his questions on 14 September. The new development is the ministerial answer issued on 8 October.
Treasury minister Lord Pitt-Watson said Bank Rate determines the interest commercial banks receive on reserves and the rate they pay to borrow additional reserves.
He said remunerating reserves at Bank Rate helps implement monetary policy and transmit interest-rate changes to households and businesses.
The answer said figures for reserves held specifically by commercial banks were not publicly available, although aggregate central-bank reserves are published.
It also pointed to published Treasury transfers involving the Asset Purchase Facility. Those figures concern that facility and do not provide a separate total for interest paid directly to commercial banks.
