BULLET: BOE Launches Weekly Euro Liquidity Facility to Cover.>

BOE Launches Weekly Euro Liquidity Facility to Cover Brexit

BOE Activates Standing Swap Line With ECB

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The Bank of England unveiled a weekly liquidity facility to ensure 

market participants would be able to obtain euros in the event of a 

disorderly Brexit. The first auction under the new Liquidity Facility in 

Euros (LiFE) will take place on March 13. It requires the activation of 

the standing swap line between the ECB and the BOE. The Financial Policy 

Committee said that while the core of the UK financial system was 

resilient to a disorderly Brexit, it anticipated significant volatility 

if one occurred. Demand for sterling assets would be hit due to the 

capital and regulatory rules covering EU insurers and others, as the UK 

becomes a third country. On the overall risk picture, the FPC said that 

risks it had previously identified, of slowing global growth and 

tightening financial conditions, had materialized.