LONDON, May 21 (Reuters) - The Bank of England is likely to see its steady state level of reserves needed to ensure financial stability fall to a range of between 345 billion and 490 billion pounds, Governor Andrew Bailey said on Tuesday.
"At the PMRR (steady state level) we will have headroom should we need to use the balance sheet again, and we can maintain monetary control through the use of Bank Rate," he said in speech to be delivered at the London School of Economics. (Reporting by William Schomberg and David Milliken; editing by William James)