BoE has published the minutes from the 15 December 2015 meeting of its working group on sterling Risk-Free Reference Rates (RFRs). The group:
- agreed a two-stage RFR selection process;
- suggested that international consensus around overnight benchmarks is helpful to eliminate tenor basis;
- set out plans to consult on the reform of the Sterling Overnight Index Average (SONIA) in the summer; and
- noted that a decision regarding the choice of sterling RFR needs to consider both current and potential future market conditions.
(Source: BoE publishes RFR meeting minutes)