LONDON, May 30 (Reuters) - The Bank of England allotted 17.186 billion pounds ($21.84 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 operation to help keep money market rates close to its official Bank Rate as it removes reserves from the financial system with its quantitative tightening 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 is allowing others to mature.
Governor Andrew Bailey said last week the recent increase in the use of the short-term repo facility showed the benefits of having "tried and tested" liquidity facilities as the central bank ran down its balance sheet.
($1 = 0.7869 pounds)
Writing by William Schomberg; editing by David Milliken
Source: Reuters