BOE Loans Banks $3.5 Billion in EU Referendum Liquidity Push
- Average take up at previous six operations was $4.2 billion
- First of three additional indexed long-term repo operations
This article is for subscribers only.
Banks took 2.46 billion pounds ($3.5 billion) in the first of three extra liquidity operations the Bank of England is holding this month as it looks to shore up funding as the U.K. considers its future in the European Union.
Governor Mark Carney is offering the cash -- in exchange for collateral -- as a precaution to help ensure the smooth functioning of sterling markets. The take up didn’t show a rush for liquidity in the week before the vote, with the total less than the average of 2.95 billion pounds allocated at the previous six regular indexed long-term repo operations. A more telling indicator may come at the next extra offering on June 21, two days before the referendum. Another will follow on June 28.