THe GBP and England's Turn

In recent weeks there have been signs of deterioration in the UK, possible contagion issues and now the BOE (Bank of England) confirms that liquidity is becoming a problem in England now for the GBP.

Here's the link to the BOE's press release:

Some of the highlight's on the Introduction of the Extended Collateral Term Repo Facility include:

In light of the continuing exceptional stresses in financial markets, the Bank of England is today announcing the introduction of a new contingency liquidity facility, the Extended Collateral Term Repo (ECTR) Facility. This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity. There is currently no shortage of short-term sterling liquidity in the market. But should that position change, the new Facility gives the Bank additional flexibility to offer sterling liquidity in an auction format against the widest range of collateral. The introduction of the ECTR Facility underlines the Bank’s commitment to take appropriate measures to maintain UK monetary and financial stability.


The ECTR Facility will give the Bank the ability to ensure that the banking sector has a sufficient access to sterling liquidity to mitigate risks arising from unexpected shocks.


I haven't said this in a few weeks, but it's starting to feel like 2008 all over again, albeit on a much larger scale then just a $USD liquidity freeze.