Bank of England allots record amount at short-term repo operation

FILE PHOTO: The Bank of England building is seen surrounded by flowers in London

LONDON (Reuters) - The Bank of England allotted 14.444 billion pounds ($18.30 billion) of one-week funds in its short-term repo operation on Thursday, the largest usage of the facility since it launched in October 2022, after previous records were set in recent weeks.

The BoE uses the weekly repo to help keep money market rates close to its official Bank Rate while it takes reserves out of the financial system with its quantitative tightening (QT) programme.

Under QT, the BoE is selling a large chunk of the government bonds that it bought over the past 15 years via its quantitative easing programme, and allowing others to mature.

($1 = 0.7894 pounds)

(Writing by William Schomberg; editing by William James)