LONDON (Reuters) -Banks borrowed 5.085 billion pounds ($6.84 billion) from the Bank of England at its weekly indexed long-term repo for six-month funds on Tuesday, the greatest amount since March 2020
Bank of England Sees Highest Six-Month Repo Borrowing Since 2020
Bank of England's Repo Borrowing Overview
LONDON (Reuters) -Banks borrowed 5.085 billion pounds ($6.84 billion) from the Bank of England at its weekly indexed long-term repo for six-month funds on Tuesday, the greatest amount since March 2020 when there was a surge of demand at the start of the COVID-19 pandemic.
Current Borrowing Trends
The BoE has been seeking to increase usage of the facility as it shifts away from a system of excess reserves in Britain's banking system and unwinds much of the 875 billion pounds of quantitative easing gilt purchases it bought from 2009 to 2021.
Collateral and Interest Rates
Almost all the funds were secured with the highest grade of collateral, which allows banks to borrow with no surcharge on top of the BoE's main interest rate.
Comparison to Previous Week
Last week, the BoE allotted 2.352 billion pounds at the repo.
($1 = 0.7438 pounds)
(Reporting by David Milliken; editing by Sarah Young)
