RTTNews - Monday, the Bank of England set out proposed extensions for its Asset Purchase Facility. The central bank intends to introduce in the near future a Secured Commercial Paper Facility to support the provision of working capital to a broad population of companies.

The central bank said it will offer to purchase securities backed by assets such as trade receivables, consistent with the APF's aim to buy high quality assets of broadly investment grade. It is intended to improve liquidity in credit markets that are not functioning normally.

Last week, the Monetary Policy Committee of the BoE had decided to continue with its bond purchases programme totaling GBP 125 billion using central bank reserves. The central bank expects to take another two months for the programme to be completed.

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