BoE auctions to be held weekly

The Bank of England is set increase the size and number of auctions it holds to help cash strapped lenders.

From Monday it will hold auctions of £40bn worth of three month money weekly rather than monthly.

The BoE is also increasing the term of its existing operations to lend US dollar funds against collateral eligible in the Bank’s short-term repos and US Treasuries.

An operation to lend $30bn of funds for one week will take place today, alongside an operation to lend funds overnight.