Commons Sense

House of Commons · Written Ministerial Statement

Notification of Contingent Liability

12 May 2022 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The authorised maximum total size of asset purchases within the Asset Purchase Facility has been reduced from 895bn to 866.6bn.
  • This decision follows a recommendation by the Monetary Policy Committee of the Bank of England.
  • Regular risk oversight meetings between HM Treasury and the Bank of England will continue to monitor the risk control framework.

Issue summary

The statement addresses adjustments to the authorised maximum size of asset purchases within the Asset Purchase Facility (APF) following a decision by the Monetary Policy Committee of the Bank of England.

Action requested

The authorised maximum total size of asset purchases has been reduced from £895bn to £866.6bn, in line with the agreed approach between HM Treasury and the Bank of England. The risk control framework will remain in place, and regular risk oversight meetings will continue.

Key facts

  • The Monetary Policy Committee decided on 03 February 2022 to reduce APF holdings by ceasing to reinvest maturing securities.
  • As of the statement date, the total stock of purchased assets has fallen from £895bn to £866.6bn.
  • The authorised maximum size for asset purchases will be adjusted every six months as the portfolio shrinks.
  • HM Treasury and the Bank of England will continue regular risk oversight meetings and information sharing.
▸ Assessment & feedback
Summary accuracy