BoE increases cash available in weekly long-term repo operations
LONDON - The Bank of England said on Wednesday the amount of cash reserves available in each weekly long-term repo operation will rise to 35 billion pounds ($47.2 billion) from 25 billion pounds, in line with new parameters proposed last year.
The change comes as the BoE moves to what it calls a repo-led, demand-driven framework for lending central bank reserves through the Indexed Long-Term Repo (ILTR).
The recalibration will also mean the maximum stock of cash available in the ILTR will rise to 840 billion pounds, while the quantity of reserves available at minimum clearing spreads will go from 5 billion pounds per auction to 8 billion pounds.
The BoE said it was making the changes after receiving feedback on a proposal set out in a discussion paper in December last year.
($1 = 0.7422 pounds)
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