MMFs play an important part in the story, because they act as a bridge between depositors’ desire for immediate liquidity and banks’ desire for term wholesale funding: providing the former with on-demand cash, while holding a significant share of their assets in banks’ term liabilities, including commercial paper (CP) and CDs. In total, sterling MMFs saw outflows of some £ or 10% of their total assets, in the eight days between 12 and 20 March (Chart 7). At first, they met these outflows by running down cash holdings. But as the outflows intensified, the MMFs tried to liquidate some of their CDs and CP, only to find, just as we’d heard, that the market was effectively closed. As MMF liquid asset ratios fell towards regulatory thresholds, we faced the prospect of one or more MMFs deciding to ‘gate’ access to investors, cutting off their access to liquidity in the fund – something that some feared could trigger further contagion. 3  The drawdown by Boeing of a $ syndicated loan facility on Wednesday 11 March was a particularly widely-cited example in global markets. 7  All speeches are available online at www.bankofengland.co.uk/news/speeches  7  As demand for cash grew, but supply failed to respond, sterling money market rates rose sharply (Chart 8). Though sharpest at longer tenors, we also saw a pickup in overnight repo rates: a particularly serious sign of dysfunction, and a challenge to our commitment to keep such rates broadly aligned to Bank Rate.
Some roles have undoubtedly been made harder: for example those involving the control of operational risk. But it has also forced us to exploit the benefits of technology in ways that many of us would never have dared do voluntarily. It has embedded flexible working in a far deeper way than before. It has brought a new understanding and respect for the challenges many staff have to deal with. It has given us back the many hours spent in mindless or stressful commuting. And, perhaps most profoundly of all, it has been a great leveller. Meetings conducted by video- or audio-conference have been more orderly – even if they are also more likely to be interrupted by over-exuberant children or misfiring wifi! Ideas and contributions matter more than who is making them, or how they are made. And we’ve become more inclusive, allowing us to share material in real time, bringing each other in and virtually raising our hands to talk. I am not sure that many people would have predicted that a global pandemic might end up being the thing that finally really moves the dial on diversity and inclusion. What I can say with some confidence is that it has been a privilege to lead the Bank’s markets function during this extraordinary period, and I look forward to discussing some of the themes I have outlined here with you further now. 15  All speeches are available online at www.bankofengland.co.uk/news/speeches  15