The Bank of England announced the next measures aimed at ensuring financial stability in the country, in addition to a two-week program of emergency purchase of long-term UK government bonds.
The bank said it would take additional measures to ensure an "orderly termination" of its purchase scheme on October 14, including increasing the size of its daily auctions. The Bank will also launch a Temporary Expanded Collateral Repo Facility (ESRF), which will allow banks to ease liquidity pressures on client funds embroiled in recent market volatility.
In addition, the Bank said it would be ready to use its regular Indexed Long Term Repo operations each Tuesday — which allow market participants to borrow BOE cash reserves for six months in exchange for less liquid assets — to further ease liquidity pressures on LDI funds.