Bank of England to pump cash into markets around EU referendum amid fear of bank run
Tim Wallace
Telegraph.co.uk
7 MARCH 2016
Banks will be offered billions of pounds of extra liquidity by the Bank of England, in case markets seize up in the weeks around the EU referendum in June.
Governor Mark Carney will be in parliament tomorrow answering questions from MPs on the implications of the vote and the Bank of England’s preparations for any market turmoil.
Similar emergency action was taken in the financial crisis when banks borrowed as much as £180bn at any one time from the central bank.
The Bank of England considered taking similar action at the time of the Scottish referendum, but as the scheme was never needed, it was only made public after the event.
This time, officials are more proactively offering the facility in advance.
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