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Term Funding Scheme (TFS)

23 April 2018 by

The Term Funding Scheme (TFS) is designed to reinforce the transmission of Bank Rate cuts to those interest rates actually faced by households and businesses by providing term funding to banks at rates close to Bank Rate. It is a monetary policy tool of the Monetary Policy Committee and will be operated as part of the Asset Purchase Facility. In addition to its primary monetary policy objective, the TFS will provide participants with a cost effective source of funding in the form of central bank reserves to support additional lending to the real economy.

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