Commons Sense

House of Commons · Written Ministerial Statement

Update on Asset Purchase Facility

07 November 2022 · Treasury

Proposed by Jeremy Hunt Con Godalming and Ash

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 size of the Asset Purchase Facility (APF) has been reduced from 966 billion to 886 billion.
  • The Governor and HM Treasury will continue to monitor risks to public funds through regular oversight meetings.
  • Information sharing with the Bank will be maintained as part of the ongoing risk management strategy.

Issue summary

The statement discusses updates to the Asset Purchase Facility (APF) by reducing its authorised maximum size from £966 billion to £886 billion.

Action requested

The authorised maximum size of the APF has been reduced to reflect the unused portion of a recent expansion. The Governor and HM Treasury will continue monitoring risks to public funds through regular oversight meetings and information sharing with the Bank.

Key facts

  • MPC decided on 03 February 2022 to reduce the stock of UK government bonds and sterling non-financial investment-grade corporate bonds held in the APF.
  • On 12 October 2022, the authorised total size of the APF was increased from £866 billion to £966 billion for a time-limited intervention.
  • Total gilt purchases under this financial stability operation reached £19.3 billion on 14 October 2022.
  • The authorised maximum size of the APF is now reduced to £886 billion.
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