Bank of England expands index-linked gilts intervention

Intervention expanded to stave off 'dysfunction' in the debt market

James Baxter-Derrington
clock • 1 min read

The Bank of England has expanded its temporary gilt purchase operations to include index-linked gilt to stave off “dysfunction” in the debt market.

According to a statement published this morning (11 October), the Bank will carry out purchases of index-linked gilts for the remainder of the intervention, buying both index-linked and conventional gilts until 14 October 2022. The expanded policy has been brought in to prevent "dysfunction" in the market, which has already seen "further significant repricing of UK government debt" this week. Alongside dysfunction, the Bank hopes the move will prevent "self-reinforcing ‘fire sale' dynamics" from taking hold. Yesterday (10 October), the daily limit of the purchasing scheme was incre...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read