Bank of England confirms details of emergency bond buying in correspondence with Treasury Committee
6 October 2022
The Treasury Committee today publishes correspondence from the Bank of England on its recent purchasing of Government bonds to shore up the UK’s financial stability.
The letter from Sir Jon Cunliffe, Deputy Governor at the Bank of England, comes in response to a series of questions from the Committee Chair, Rt. Hon. Mel Stride MP.
On 28 September, the Bank announced a programme of temporary purchases of long-dated UK government bonds. This was the first gilt purchase announcement that the Bank has justified on financial stability grounds.
In the outgoing letter, the Chair asked Sir John to outline the events leading up to the intervention that led the Bank to consider this step, why the intervention was judged necessary, whether there will be any implications on monetary policy, and how the Bank will determine whether the intervention has been successful - and is no longer required.
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