Bank Demand at BOE Liquidity Operation Surges After Brexit
- BOE allots 3.1 billion pounds; bids at highest since 2014
- Mervyn King says central bank is right to provide funds
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Banks’ demand for cash surged at the Bank of England’s first liquidity operation since the U.K. voted to leave the European Union, with financial institutions requesting more than double the amount allocated.
At the auction of cash in exchange for collateral, banks were allotted 3.1 billion pounds ($4.1 billion). They bid for 6.3 billion pounds, the highest since the central bank started its revamped repo operations in February 2014. The operation also saw the biggest allocation of money at the central bank’s lowest grade of acceptable collateral.