BoE has published the minutes from the 26 November meeting of its working group on Sterling Risk-Free Reference Rates (RFRs). The group:

  • determined that an RFR could only be a credible LIBOR alternative if it was first established as the primary reference rate for the overnight index swap (OIS) discounting curve and was the standard rate used to remunerate collateral balances;
  • outlined the methods for transitioning the OIS market;
  • discussed the appropriate notice period for a hypothetical discontinuation of the Sterling Overnight Index Average (SONIA); and
  • agreed that, where appropriate, a gradual transition away from LIBOR could begin before the OIS transition was complete.

(Source: BoE Publishes RFR Meeting Minutes)