BoE to offer extra repo operations near EU referendum
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BoE to offer extra repo operations near EU referendum 09 March 2016London Reporter: Drew Nicol
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The Bank of England will offer three additional indexed long-term repo (ILTR) operations in the weeks around the EU referendum, in a bid to quell uncertainty in the markets.
UK voters will decide 23 June whether they want to remain a member of the EU. The operation date for the Bank of England’s ILTRs will be 14, 21 and 28 June, with settlement dates of 16, 23 and 30 June respectively. The maturity date for all three operations is 8 December.
Regular ILTR operations will continue to take place once a month, according to the central bank.
The central bank will also continue to offer liquidity insurance via its other facilities, including running a weekly US dollar repo operation, throughout this period.
Market conditions will be monitored carefully by the central bank and operations will be kept under review.
Bank of England governor Mark Carney warned on 8 March that the possibility of the UK leaving the EU is the “biggest domestic risk to financial stability”.
He did add that “the global risks, including from China, are bigger than the domestic risks”.
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