The Bank of England is readying emergency funds designed to protect the UK economy from "unexpected shocks".
The Bank announced its new short-term liquidity facility as the eurozone crisis is set to intensify this week with all eyes on a crucial meeting of leaders on Friday. According to the Bank of England, the Extended Collateral Term Repo (ECTR) facility has been introduced "in light of the continuing exceptional stresses in financial markets". The aim will be to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity, which could arise as a result of unexpected shocks. However, the Bank said "there is currently no shortage of short-te...
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