Banks take Old Lady's money

The Bank of England's adoption of a new auction method for open market operations met with success on Tuesday as all of the available funds were allocated.

The Bank accepted bids above 5.36% for three-month funds, 14 basis points below bank rate, a move which signalled a desire to get interbank rates nearer policy rate levels. The result was that the Bank allocated all £10 billion-worth ($20 billion) of three-month money, charging an average borrowing cost of 5.95%, 45 basis point above bank

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: