Bank of England unveils new stability tool to soothe gilt market ructions

The Bank of England on Wednesday set out details of a new financial stability tool that insurers and pension funds will be able to use during severe turbulence in the British government bond market.

The BoE said the Contingent Non-Bank Financial Institution Repo Facility (CNRF) will allow companies to borrow cash from the BoE, using gilts they own as collateral, and would be open to applications from the fourth quarter of this year.

Source: REUTER