The Bank of England (BoE) said today it will introduce a new contingency liquidity facility, know as the Extended Collateral Term Repo (ECTR) Facility, in response to the turbulences engulfing financial markets.

The facility would allow the bank flexibility in offering sterling liquidity on short term basis in case of any shortage stemming from the volatility in markets.

As of 14:00 GMT, the pound is traded lower against the greenback around 1.5595 compared with the day's opening level of 1.5646.