Bank of England begin their long-signalled liquidity operations as the EU referendum draws ever closer 14 June 2016
- GBP 2.455bln allotted in indexed 6-month long-term repo
- repo results show bids received from banks and funds allotted lowest since February's regular offering
The BOE have been signalling for a while their intent to add liquidity in the run-in to the 23 June EU referendum vote but the lack of take-up will be of concern. Or perhaps the banks have gorged enough already at the table of cheap money.
Either way cable had another test of the support/demand between 1.4100-20 but has bounced back into 1.4150 as EURGBP sellers win the day so far.
The BOE has another repo scheduled for next Tuesday and a further one on the Tuesday after (28th) by which time we will know exactly where they stand on the result.