BOE: Launching a temporary expanded collateral repo facility

On Monday, the Bank of England (BOE) said in a statement that they are launching a temporary expanded collateral repo facility.

Additional takeaways

The facility is to enable banks ease liquidity pressures facing their client LDI funds through liquidity insurance operations.

In the final week of operations, bank is announcing additional measures to support an orderly end of its purchase scheme.

The bank will stand ready to increase size of its daily auctions to ensure there is sufficient capacity for gilt purchases ahead of Friday 14 October.

The maximum auction size will be confirmed each morning at 9am and will be set at up to £10 billion in today's operation.

The bank's existing reserve pricing mechanism will remain in operation during this period.