Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 04/11/2022

Letter from the Governor of the Bank of England to the Chancellor of the Exchequer 04/11/2022

Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 04/11/2022

On 28 September, the Bank announced that it would carry out temporary purchases of long-dated UK government bonds (gilts) through the Asset Purchase Facility (APF) under the Bank’s financial stability objective to restore orderly conditions. Ahead of the intervention, the Chancellor confirmed the Treasury’s authorisation of an increase of up to £100 billion in the amount of gilts that the APF can purchase. Total gilt purchases under this new operation reached £19.3 billion when the daily auctions ended as planned on 14 October. The Chancellor and Governor have therefore agreed to reduce the authorised maximum size of the APF from £966 billion, as was agreed on 28 September 2022, to £886 billion.