BoE injects £3.1bn of liquidity into banks after Brexit.The Bank of England has pumped £3.1bn into the country’s banking system following the UK’s decision to leave the EU.
The liquidity injection is the last of the central bank’s three scheduled special auctions announced before the UK referendum and designed to quell any panic about the state of the country’s lenders.
It is the first operation that has taken place since the UK voted to leave the EU on June 23. The BoE allotted £3.072bn to lenders, having received bids amounting to £6.3bn. Most of the collateral offered was the lowest ‘Level C ‘ grade assets, according to the Bank’s data.
Tuesday’s first post-Brexit auction compares to the £2.45bn and £317m allotted in the two pre-referendum auctions on June 14 and June 21.
It comes after the Bank of Japan provided $1.5bn to its lenders in a special liquidity operation earlier today.
Mark Carney, governor of the BoE, announced the Bank was willing to pump £250bn into the financial system in the aftermath of the vote.
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