I have just had this drawn to my attention. It comes from the Sunday Times this weekend. It is from an interview with Andrew Bailey, the governor of the Bank of England:
The message is very clear: the Bank of England clearly thinks that the central bank reserve accounts that are created as a consequence of quantitative easing, and which are held by the clearing banks with the Bank of England, are critical to the financial stability of the UK economy.
As to the question that Bailey poses as to how many hundreds of billions of liquidity are required, I suggest that there is an answer. That answer is not less than £895 billion, which just happens to be the current target sum for quantitative easing, and may be considerably more when the need for green quantitative easing is taken into account.
Green QE is, of course, the variant on this theme that will be used to directly fund the process of change required to tackle the climate crisis.