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Notification of Contingent Liability

12 May 2022

Proposing MP
Rishi Sunak Con
Richmond and Northallerton
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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.
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