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Notification of Contingent Liability

11 November 2020

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

At a Glance

Issue Summary

The Treasury Minister Rishi Sunak is notifying Parliament about an increase in the Asset Purchase Facility (APF) limit by £150 billion to support the economy.

Action Requested

I have authorised an expansion of the APF from £745 billion to £895 billion. The Government will continue to indemnify the Bank and the APF against potential losses, with any liability covered through normal supply procedures. A detailed departmental Minute has been laid in the House of Commons.

Key Facts

  • Monetary Policy Committee (MPC) of the Bank of England decided on an expansion of the Asset Purchase Facility (APF).
  • The increase is up to £150 billion for further purchases of gilts.
  • The total size of the APF will be increased from £745 billion to £895 billion.
  • HM Treasury will continue monitoring risks through regular risk oversight meetings and enhanced information sharing with the Bank.
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