"This paper estimates yield curve models for the United Kingdom, where the underlying determinants have a macroeconomic interpretation. The first factor is an unobserved inflation target, the second factor is annual inflation, and the third factor is a 'Taylor rule residual', which, among other...

In its money market operations, the Bank of England implements the interest rate decisions of its Monetary Policy Committee while meeting the liquidity needs of the banking system and, thus, contributing to its stability. The Bank has decided that it needs to upgrade the way in which it carries...