House of Commons · Written Ministerial Statement
Notification of Contingent Liability
24 March 2020 · Treasury
Proposed by Rishi Sunak Con Richmond and Northallerton
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Bank of England's Monetary Policy Committee requested an expansion of the Asset Purchase Facility to support the economy due to the disruption caused by Covid-19.
- The total size of the Asset Purchase Facility has been increased by 200 billion, from 445 billion to 645 billion.
- The Government will indemnify the Bank of England and the APF from any losses arising from this facility.
Issue summary
The Bank of England's Monetary Policy Committee (MPC) requested an expansion of the Asset Purchase Facility (APF) to support the economy through the disruption caused by Covid-19.
Action requested
I have authorised an increase in the total size of the APF by £200 billion, bringing it from £445 billion to £645 billion. The Government will continue to indemnify the Bank and the APF from any losses arising out of this facility, with provisions sought through normal supply procedures if necessary.
Key facts
- The MPC requested an expansion in the maximum limit of purchases that may be undertaken by the Asset Purchase Facility (APF) up to £200 billion.
- This will bring the total size of the APF from £445 billion to £645 billion.
- The Government will continue to indemnify the Bank and the APF from any losses arising out of, or in connection with, the facility.