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BOE: STR usage drops back - trend remains broadly intact

BOE
Bank of EnglandCentral Bank NewsCEEMEABulletUKGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • The usage of the BOE's STR facility has fallen back by GBP7.464bln this week.
  • This was the largest drop in facility usage - but bear in mind it only has a short history with only around 6-months of usage.
  • There was a similar drop in usage on 8 August of GBP6.551bln.
  • We note that both of these drops in usage have occurred the week after MPC meetings - although it's too early to tell if there is any causation here, or even if there is a correlation (with only two real data points to look at before usage ramped up a bit more). We note that there wasn't a decrease in usage the week after the June MPC meeting (but there was in the operation on the day of the meeting).
  • It also appears as though usage of the STR still remains overall on the same uptrend, but that there is a little more volatility in the week-to-week takeup.
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  • The usage of the BOE's STR facility has fallen back by GBP7.464bln this week.
  • This was the largest drop in facility usage - but bear in mind it only has a short history with only around 6-months of usage.
  • There was a similar drop in usage on 8 August of GBP6.551bln.
  • We note that both of these drops in usage have occurred the week after MPC meetings - although it's too early to tell if there is any causation here, or even if there is a correlation (with only two real data points to look at before usage ramped up a bit more). We note that there wasn't a decrease in usage the week after the June MPC meeting (but there was in the operation on the day of the meeting).
  • It also appears as though usage of the STR still remains overall on the same uptrend, but that there is a little more volatility in the week-to-week takeup.