Bank of England Funds - No Bids

by Wenonah Lyon

Story link: Bank of England Funds - No Bids

In an attempt to provide greater liquidity in the financial markets, the Bank of England conducted an auction of £10 billion in funds.

These fund matured after three months and were provided against a greater range of collateral than usually provided by the Bank of England.

The funds were available at a more expensive rate than that offered by inter-bank loans.

Banks’ refusal to accept the Bank of England’s offer suggests measures taken by the Bank have been successful and emergency funding is unnecessary.