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Update on Asset Purchase Facility

07 November 2022

Proposing MP
Godalming and Ash
Type
Written Ministerial Statement
Department
Treasury

At a Glance

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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