LONDON (Reuters) - The Bank of England said on Tuesday it would offer 20 billion pounds in a two-day repo market operation at 9:45 a.m., in response to conditions in short-term money markets.
The funds will be offered at Bank Rate -- 5 percent.
"The Bank will take actions to ensure that the overnight rate is close to Bank Rate," the Bank said in a statement. "Along with other central banks the Bank of England is closely monitoring market conditions."
The Bank offered 5 billion pounds in three-day funds at Bank Rate on Monday. Financial markets have been in flux following fresh concerns over the impact of the credit crunch after the demise of U.S. investment bank Lehman Brothers.