BOE Urges Markets to Prepare for Big Rise in Repo Operations
- Bailey warns of ‘bumps’ as reserves reach stable level in 2025
- Data shows QE cost to UK taxpayers since 2022 now at £61bn
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Bank of England Governor Andrew Bailey told markets to prepare for a big increase in securities repurchase operations as it overhauls its liquidity arrangements and reduces the central bank reserves created to support the economy over the past 15 years.
Signaling a radical shift in the way it provides cash to financial institutions for their day-to-day operations, Bailey said he wants to replace the asset purchases done under quantitative easing with “repos” — or short-term loans.