Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Update on recent Bank of England asset purchases

12 October 2022

Proposing MP
Kwasi Kwarteng Con
Spelthorne
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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.
▸ Assessment & feedback
Summary accuracy