BOE says they will offer extra liquidity around the Brexit vote
- Will offer three extra indexed LTRO's
- Will add thre repo operations June 14th,21st & 28th
- BOE will continue to closely monitor market conditions
It's no surprise that the Old Lady is making contingency plans for the referendum. The news will be pound positive in the context that support will be there over a high risk moment in time. This type of news would be viewed differently than if we heard headlines that the government would also be making contingency plans. The BOE is news of comfort, while similar from the government would be news of worry. The fact that the government would be stupid not to have any emergency plans is irrelevant as far as market perceptions go.