Bank Demand at BOE Liquidity Auction Plunges Before Brexit Vote
- BOE allots 370 million pounds in second extra ILTR operation
- Final liquidity operation before Thursday’s EU referendum
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Financial institutions’ demand for spare cash dropped at the Bank of England’s second offering of extra liquidity, which was made available to assure sufficient funding around Britain’s referendum on European Union membership.
Banks sought just 370 million pounds ($546 million) on Tuesday, compared with 2.46 billion pounds at the previous extra indexed long-term repo operation on June 14, according to the central bank. This is the final operation before Thursday’s vote, with another to be held on June 28. The BOE is holding four auctions this month -- offering funds in exchange for collateral -- instead of the usual one.