BOE Starts New Sterling Liquidity Facility as Crisis Spirals
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The Bank of England introduced a new sterling liquidity facility to address potential financial-market strains as Europe’s sovereign debt crisis intensifies.
The central bank announced the move “in light of the continuing exceptional stresses in financial markets,” it said in a statement in London today. “This facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity.”