LONDON, March 11 (Reuters) - Following is a full text of the Bank of England’s announcement on liquidity measures made in ocnjunction with other central banks.
STATEMENT ON JOINT ACTION
Since the co-ordinated actions taken in December 2007, the G-10 central banks have continued towork together closely and to consult regularly on liquidity pressures in funding markets. Pressures in some of these markets have recently increased again.
We all continue to work together and will take appropriate steps to address those liquidity pressures.
To that end, today the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve and the Swiss National Bank are announcing specific measures.
STATEMENT MADE EARLIER ON OPERATIONS
The Bank of England will maintain its expanded 3-month long-term repo open market operations (OMOs) against a wider range of high quality collateral in its scheduled operations on 18 March and 15 April.
This is a continuation of the arrangements that applied in the December 2007 and January 2008 long-term repo OMOs. The Bank is taking this action in view of continuing elevated pressures in short-term funding markets.
In its scheduled long-term repo OMO on 18 March, the Bank will offer £10bn at the 3-month maturity. The Bank will decide the size of the April operation in the light of the results of March’s operation.
In both operations, there will be a minimum bid rate at the 3-month maturity. This will be determined by the Bank based on the 3-month overnight index swap (OIS) rate, and will be announced shortly before the operation.
The maximum total size of a counterparty’s bids, across all maturities offered in the long-term repo OMO, may not be greater than 20% of the total size, across all maturities, of the long-term repo OMO.
The wider range of high quality collateral will be the same as that accepted in the December and January operations. Reserves will also be offered as usual at the 6, 9 and 12 month maturities, in the standard size and against the Bank’s standard published list of eligible collateral.
The total size of the March operation will therefore be 11.35 billion pounds.
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