BoE prepares more market support as cliff edge looms
Central bank creates temporary repo facility with wider range of eligible collateral
The Bank of England has broadened its measures to support the functioning of the gilt market, as the cut-off point for its temporary asset purchases looms.
The BoE said today (October 10) it would “stand ready” to buy more than the £5 billion ($5.5 billion) daily ceiling it has set since September 28. Today’s operation was capped at £10 billion, but as on previous days, offers fell significantly short of the maximum, totalling £853 million (see figure 1).
The central bank has also launched a
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