Bank of England’s first ECTR auction of £5bn fully subscribed
The Bank of England has set in motion the Extended Collateral Term Repo (ECTR) facility, whereby money is auctioned to banks to provide them with more liquidity.
In the first auction held today the Bank offered £5 billion in cheap loans with a rate of 0.75% to be paid back in six months. This was taken up entirely by participating banks.
All banks who are registered for access to the Bank of England’s Discount Window Facility (DWF) are eligible to apply.
The ECTR auction will be held at least monthly until further notice.