Commons Sense

House of Commons · Written Ministerial Statement

Update on recent Bank of England asset purchases

12 October 2022 · Treasury

Proposed by Kwasi Kwarteng Con Spelthorne

Economy

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

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At a glance

Key points

  • The Bank of England has decided to carry out temporary purchases of long-dated UK government bonds and index-linked gilts through the Asset Purchase Facility (APF).
  • Kwasi Kwarteng has authorised an increase in the total size of the APF by 100 billion.
  • The Bank will continue daily gilt purchase operations and monitor risks through regular meetings with HM Treasury.

Issue summary

The statement addresses the Bank of England's decision to carry out temporary purchases of long-dated UK government bonds and index-linked gilts through the Asset Purchase Facility (APF) to restore market order.

Action requested

I have authorised an increase in the total size of the APF by £100 billion, bringing its maximum total size from £866 billion to £966 billion. The Bank will continue daily gilt purchase operations and monitor risks through regular meetings with HM Treasury.

Key facts

  • Temporary purchases of long-dated UK government bonds (gilts) began on 28 September through the APF.
  • The total size of the APF was increased by £100 billion to £966 billion.
  • Purchases of index-linked gilts were added to daily operations from 11 October.
  • The Government will indemnify the Bank and the APF from any losses arising out of the facility.
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