UK banks borrow 3.7 bn pound from BoE as Covid-19 effects impact economy

Former BoE Governor Mark Carney said last week they were likely to be part of the solution to an economic crisis, rather than the cause.More liquidity is also on the way, should banks need it.

Banks borrowed the largest amount of six-month sterling funds from the Bank of England on Tuesday since the run-up to the 2016 Brexit referendum, a sign of demand for cash as the coronavirus crisis hammers financial markets.

The BoE handed out 3.679 billion pounds ($4.45 billion) in its weekly indexed long-term repo operation (ILTRO), the largest amount since it started holding weekly operations in March 2019, and the largest for any operation since March 2016, when they took place monthly.

Banks placed bids worth 4.369 billion pounds, the BoE said in a statement.Similar operations to provide long-term