LONDON (MNI) – There was not take up at all at the Bank of
England’s Extended Collateral Term Repo operation, the BOE announced
Wednesday.
The BOE allotted a zero amount having offered Stg5 billion at the
minimum clearing spread of 25 basis points over Bank Rate.
The minimum size for the monthly ECTR is Stg5 billion, with the BOE
ready to offer more if banks indicate they want it.
The ECTR, designed to provide banks with liquidity in times of
market wide stress, was activated back on June 15. This was just ahead
of the Greek elections on June 17 and the downside risks associated with
did not materialize.
Since its launch the ECTR has seen low, and now no, demand.
-London newsroom: 00 44 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$$BE$]