Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 16/01/2023

Letter from the Governor of the Bank of England to the Chancellor of the Exchequer 16/01/2023

Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 16/01/2023

Details

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. Total gilt purchases under this temporary operation reached £19.3 billion when the daily auctions ended as planned on 14 October. On 29 November 2022, the Bank began to unwind its financial stability related gilt portfolio in a timely and orderly way and completed the process on 12 January 2023. The Chancellor and Governor have therefore agreed to reduce the authorised maximum size of the APF from £871 billion, as was agreed on 23 November to £851 billion.