As a result, the Bank plans to bring the £ billion of lending extended through the TFS onto our balance sheet by the end of 2018/19 the financial year. The additional capital means the MPC could, if necessary, re-launch the TFS in future on the Bank’s balance sheet, cementing 0% as the lower bound. Bringing the TFS onto the Bank’s balance sheet next year will mark the first step in winding down the Bank’s Asset Purchase Facility (APF). After the TFS has been transferred, the APF will fall to £ billion – the value of the government and corporate bonds purchased by the MPC as part of its Quantitative Easing programme. The MPC updated its guidance today on unwinding its asset purchases. Previously, the Committee had noted that it would not begin reducing the stock of assets until Bank Rate had reached around 2%. That reflected the MPC’s preference to use Bank Rate as the primary instrument for monetary policy and its  15  In the run-up to the vote, the Bank undertook extensive contingency planning which included encouraging banks to pre-position enough collateral in our facilities to enable them to draw down up to £ billion in liquidity. The combination of this war chest and coordinated G7 central bank action helped ensure markets functioned normally as the system absorbed a result that had been assigned a 10% probability hours before. And it meant we could credibly communicate to the public that we were well prepared for the result. 16 See https://www.bankofengland.co.uk/letter/2018/banks-financial-framework-june-2018.
Having put in place the pillars of responsible, open financial system, we are ready for deeper Global Financial Partnerships with the emerging economies that will be the most important drivers of global growth in the decades ahead. It is in this context of a confident, open and forward-looking City that the government’s discussions with Europe will take place. ------------------------------------------  12  All speeches are available online at www.bankofengland.co.uk/speeches  12  My Lord Mayor, this evening I have outlined the Bank’s priorities, but unlike a century ago, the Bank’s “policy” won’t be handed down to an unquestioning City. The new finance will develop for the new economy, not in isolation from it. Over the course of this year, Bank colleagues, led by Huw van Steenis, will explore these and other themes in roundtables, workshops and forums with a broad range of stakeholders up and down the UK. While we prepare for great change, we will be guided by one constant: our mission to promote the good of the people we all serve. 13  All speeches are available online at www.bankofengland.co.uk/speeches  13