On 17 September 2008, the Bank of England announced that the drawdown period for its special liquidity scheme will be extended until 30 January 2009. Under the scheme, banks and building societies can swap certain high quality mortgage-backed and other securities for UK Treasury bills.

Publication of the Bank of England's consultation document on proposals for permanent reforms of its market operations, originally scheduled for this week, will now be "at a later date" (see Legal update, Bank of England to ensure that banking system has access to liquidity insurance).

For further information on the special liquidity scheme, see Legal update, Bank of England launches scheme to help banks with liquidity and Legal update, Bank of England responds to questions on the Special Liquidity Scheme.