“Other assets” on the Bank of England’s balance sheet have fallen in each of the last four weeks and are now £4.8 billion below a peak reached in late January. The most likely explanation for the decline is that Northern Rock is repaying its loan from the Bank as it enjoys a cash inflow from redeeming mortgages and savers attracted by its competitive rates and the unlimited government guarantee. If correct, this would support analysis suggesting Rock will pay back its loan much earlier than the three to four year horizon indicated in its business plan released this week (see here).