LONDON (Reuters) - The Bank of England said it received no bids for a second month running at its extended collateral repo operation on Wednesday, suggesting little appetite from British banks for the 5 billion pounds of six-month funds on offer.
Demand for funds at the ECTR has been generally low since the Bank started the facility in June to provide an emergency back stop in case British banks found it hard to raise funds due to turbulent financial market conditions.
Funds are allotted at a minimum effective interest rate of 0.25 percentage points above the BoE’s 0.5 percent Bank Rate.
On Tuesday, the Bank said it would hold another repo next month, but that from next year it would review each month whether there was any demand before holding a repo.
Reporting by David Milliken; Editing by Catherine Evans