Article 8 Remuneration

United Kingdom

Holdings of required reserves are remunerated at the average, taken over the maintenance period, of the ECB rate (weighted according to the number of calendar days) for the main refinancing operations of the Eurosystem according to the following formula (whereby the result is rounded to the nearest cent):

R_{t} = \frac{H_{t} \times n_{t} \times r_{t}}{100 \times 360}

r_{t} = \sum_{i = 1}^{n_{t}} \frac{{MR}_{i}}{n_{t}}

Where:

R_t

remuneration to be paid on holdings of required reserves for the maintenance period t;

H_t

average daily holdings of required reserves for the maintenance period t;

n_t

number of calendar days in the maintenance period t;

r_t

rate of remuneration on holdings of required reserves for the maintenance period t. Standard rounding of the rate of remuneration to two decimals shall be applied;

ith calendar day of the maintenance period t;

MR_i

marginal interest rate for the most recent main refinancing operation settled on or before calendar day i.

The remuneration shall be paid on the second NCB business day following the end of the maintenance period over which the remuneration was earned.