Banks Borrow Record £51.4 Billion in Cash From BOE Repo Program
- The record borrowing comes amid volatile trading in gilts
- Increase does not appear to reflect stress among lenders
Financial institutions tapped the BOE’s short-term repo facility.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Growing demand for cash saw use of the Bank of England’s liquidity program rise to a record this week, in a move that likely reflects the central bank shrinking its balance sheet rather than a recent market selloff.
Financial institutions tapped the BOE’s short-term repo (STR) facility, which provides cash in return for pledging gilts, for £51.4 billion ($63.2 billion) this week, according to a central bank notice on Thursday.