(Finance) – Bank of Englandvia a letter from Governor Andrew Bailey to Finance Minister Jeremy Hunt, he said the maximum amount of asset purchases it can be reduced to £ 886 billion from £ 966 billion following the conclusion of emergency bond purchases last month.
On 28 September, the Ministry of Finance authorized an increase in the maximum size of theAsset Purchase Facility (APF) of 100 billion to 966 billion pounds, which it was intended to allow the execution of financial stability operations to the extent that might have been necessary to address the risks caused by the maneuver proposed by former Prime Minister Liz Truss.
After the final purchase transactions on October 14, the Bank of England has purchased a total of £ 19.3 billion worth of gilts. “As the purchases are now closed, the maximum size of the APF can be reduced, from 966 billion pounds to 886 billion pounds,” the exchange reads.
In addition to the many actions undertaken with a view to restoring financial stability, the Bank also decided to postpone the start of the planned gilt sales operations which should have started on 3 October. Sales operations began on November 1st. L’MPC’s annual target of a £ 80 billion stock reduction is unaffected and remains unchanged.