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Bank of England reports spike in banks' demand for cheap finance
December 1, 2016 / 3:16 PM / a year ago

Bank of England reports spike in banks' demand for cheap finance

LONDON, Dec 1 (Reuters) - British lenders’ usage of a Bank of England scheme which helps them pass on August’s interest rate cut more than doubled over the past week, figures from the central bank showed on Thursday.

The BoE said the total amount of loans made through its Term Funding Scheme was 5.779 billion pounds ($7.30 billion) between Sept. 19 and Nov. 30, up from 2.314 billion pounds in data last week which covered the period running up to Nov. 23.

The central bank said in August that it could make up to 100 billion pounds of cheap finance available to banks through the scheme, and expected some to use the TFS to roll over financing from the BoE’s earlier Funding for Lending Scheme (FLS).

The central bank also said its total corporate bond purchases had risen to 3.964 billion pounds from 3.471 billion pounds, more than a third of its 10 billion pound target. ($1 = 0.7920 pounds) (Reporting by David Milliken, editing by Andy Bruce)

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