Bank of England Reserves Balances Edge Lower Amid Tighter System Liquidity

The Bank of England has released its weekly balance sheet update for September 9, 2026. The report shows that reserves balances have decreased to £641,563 million from £643,685 million in the previous week, indicating tighter system liquidity.

Short-term repo operations have also decreased to £123,656 million compared to £124,825 million a week earlier. On the other hand, indexed long-term repo holdings have risen to £84,353 million from £83,874 million.

The Bank of England's foreign currency positions have increased, with foreign currency public securities issued rising to £20,885 million and foreign currency reserve assets reaching £21,358 million. This suggests a higher exposure to foreign currencies.