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New market facility announced: The Contingent NBFI Repo Facility

BOE
  • The BOE has released a provisional Market Notice looking at its new financial stability tool - the Contingent NBFI Repo Facility.
  • The Bank says this will allow it to "intervene where severe liquidity-related dysfunction in gilt markets threatens financial stability, by developing a facility that will allow eligible Non-Bank Financial Institutions (NBFIs) to borrow cash against gilts at times of severe gilt market dysfunction."
  • Market notice here
  • Explanatory notes here

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