The Bank of England (BOE) is launching a new liquidity facilityin euros in the final few weeks before the scheduled date forBritain to leave the European Union (EU).

The bank said Tuesday that the weekly auctions from March 13 area “prudent and precautionary step” to allow U.K. lenders to accesseuro funding. The bank already offers dollar auctions on a similarbasis.

Although the prospects seem to be fading for a no-deal Brexit on March 29, the BOE's FinancialPolicy Committee (FPC) said “significant market volatility” is tobe expected in this scenario. Still, the central bank reiteratedthat the core banking system is strong enough to continuefunctioning properly and wouldn't amplify the disruption.

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