–Cites “Continuing Exceptional Stresses In Financial Markets”
–Move Gives Bank Additional Flexibility To Offer Stg Liquidity
LONDON (MNI) – The Bank of England announced today that it is
introducing a new extended collateral term repo facility (ECTR) in light
of “continuing exceptional stresses in financial markets”.
The BOE said that the new repo is “designed to mitigate risks to
financial stability arising from a market-wide shortage of short-term
sterling liquidity” but stressed that there “is currently no shortage of
short-term sterling liquidity in the market”.
“But should that position change, the new Facility gives the Bank
additional flexibility to offer sterling liquidity in an auction format
against the widest range of collateral”.
The Bank said that the ECTR demonstrated its commitment to
safeguarding monetary and financial stability.
–London Bureau; Tel: +442078627492; email: dthomas@marketnews.com
[TOPICS: M$$BE$]
