BoE finalises unwind of 瞿19.3 billion gilts purchase made to restore stability after UK mini-budget
12 January 2023 UK
Image: AdobeStock/thinglass
The Bank of England has finalised the sell-off of the 瞿19.3 billion in gilts purchased in September and October 2022 to restore financial stability in the wake of the UK governments mini-budget.
Following yesterdays reverse enquiry window, and the subsequent bilateral sale of the small remaining holdings held on its balance sheet, the Bank of England has confirmed that it has completed the unwind of these temporary gilt holdings purchased between 28 September and 14 October.
These temporary holdings, acquired through its asset purchase programme for financial stability purposes, consisted of 瞿12.1 billion in long-dated conventional gilts and 瞿7.2 billion in index-linked gilts.
It began the unwind of these temporary holdings on 29 November, making these available to potential buyers through a series of reverse enquiry windows in a bid to ensure that the process was responsive to market demand and did not trigger renewed dysfunction.
A Bank of England spokesperson indicates that the Monetary Policy Committee has been informed of the sale in accordance with the Concordat governing the MPCs engagement with the Banks executive regarding balance sheet operations.
Following yesterdays reverse enquiry window, and the subsequent bilateral sale of the small remaining holdings held on its balance sheet, the Bank of England has confirmed that it has completed the unwind of these temporary gilt holdings purchased between 28 September and 14 October.
These temporary holdings, acquired through its asset purchase programme for financial stability purposes, consisted of 瞿12.1 billion in long-dated conventional gilts and 瞿7.2 billion in index-linked gilts.
It began the unwind of these temporary holdings on 29 November, making these available to potential buyers through a series of reverse enquiry windows in a bid to ensure that the process was responsive to market demand and did not trigger renewed dysfunction.
A Bank of England spokesperson indicates that the Monetary Policy Committee has been informed of the sale in accordance with the Concordat governing the MPCs engagement with the Banks executive regarding balance sheet operations.
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