Sterling Monetary Framework
Long-Term Repo Open Market Operations

The Bank currently provides long-term financing to the banking system through long-term repo OMOs and through Gilt Purchases to back the note issue.

The Bank conducts long-term repos monthly, usually at 10am on a Tuesday mid-month. The Bank may lend at 3, 6, 9 and 12-month maturities. The price of long-term repos are determined in variable-rate auctions on a discriminatory-rate basis.

Since December 2007, and especially since September 2008, the Bank has increased the amount and frequency of its three-month lending and has expanded the range of collateral eligible in those operations (i.e. in 'extended long-term repos'.)

As described in the Bank's consultative paper of October 2008 on the development of the Bank's market operations, the Bank is minded to widen permanently the range of collateral eligible in its routine monthly long-term repo OMOs (and plans, after consultation, to modify their operational design).

Counterparties participate in long-term repo OMOs electronically via Btender, the Bank’s electronic tendering system.

Results

Market Notices

The main SMF Documentation sets out how these operations work. Its provisions may be amended by the Bank from time to time by Market Notices.

Information for participants

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