UK DMO raises rates on repo facility after BoE hike

LONDON - The United Kingdom Debt Management Office said it would raise the interest rate on its standing repo facility, which allows primary dealers to borrow government bonds, after the Bank of England raised its main interest rate.

The DMO said that the floor rate for the facility would rise to 0% from minus 0.15%. Lending would normally also involve a reverse repo at the BoE's base rate, which is now 0.25%, the DMO added.