Sterling Monetary Framework
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UK central bank oversight.
The Sterling Monetary Framework (SMF) describes the Bank of England's operations in the sterling money markets.
The SMF includes:
- Operational Standing Facilities (OSFs).
- Liquidity insurance.
The SMF's purposes are to:
- Implement the Bank of England's Monetary Policy Committee's (MPC's) decisions in order to meet the UK government's inflation target.
- Reduce the risk and cost to the UK economy of any disruption to the critical financial services provided by banks and other participants in the SMF.