If LIBOR shot up, why not lborrow from BoE?

[bullboy8]

1. As you are all aware, the LIBOR (3 Month) has been higher than base rate. So why don't commercial banks jsut go borrow money from the BoE where it is 5.5% (cheaper).

I know BoE lend money for both short and long term (long term requiring high quality collateral)-so if a commercial bank don't have high quality collateral they can't borrow from BoE?

2. Also, is the Stadnby facility part opf the short term lending, or does it come under emergency lending?

3. objective 1 for BoE is to "ensure overnight market interest rate" to be in line with the official bank rate (aka base rate), so that there is a flat money market yield curce", is this the LIBOR rate or is it referring to the "sterling money market"?

Please comment on the three points

 

[DC STOXX]

1. As you are all aware, the LIBOR (3 Month) has been higher than base rate. So why don't commercial banks jsut go borrow money from the BoE where it is 5.5% (cheaper).

I know BoE lend money for both short and long term (long term requiring high quality collateral)-so if a commercial bank don't have high quality collateral they can't borrow from BoE?

2. Also, is the Stadnby facility part opf the short term lending, or does it come under emergency lending?

3. objective 1 for BoE is to "ensure overnight market interest rate" to be in line with the official bank rate (aka base rate), so that there is a flat money market yield curce", is this the LIBOR rate or is it referring to the "sterling money market"?

Please comment on the three points

Well once upon a time there was a bank called Northen Rock, they decided to borrow from the BOE