BoE to phase out emergency sterling liquidity operations

FILE PHOTO: People wearing masks walk past the Bank of England, as the spread of the coronavirus disease (COVID-19) continues, in London, Britain

The Bank of England said on Friday it would begin to phase out weekly emergency sterling liquidity operations that it introduced in March now that financial market tensions have calmed.

The Contingent Term Repo Facility, which supplements regular BoE sterling operations, will stop offering three-month funds at the end of May, while weekly auctions of one-month CTRF funds are scheduled to stop at the end of June.

“CTRF operations can also be rapidly reintroduced at any stage if justified by market conditions,” the BoE said.

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