The Bank of England aims to calm the bond market and ease liquidity pressures that arose after the mini-budget announcement.
The Bank of England has moved to ease concerns about the expiry at the end of this week of its emergency programme to calm turmoil in the government bond market, including a doubling of the maximum size of its planned debt buy-back.
After finance minister Kwasi Kwarteng alarmed investors with a string of unfunded tax cuts last month, the central bank said on September 28 that it would temporarily buy up to 5 billion pounds ($5.5bn) a day of gilts with a maturity of at least 20 years.
So far, the BoE has bought far less than the minimum daily limit, but on Monday it said it was taking steps to ensure the scheme concludes smoothly.
“In the final week of operations, the Bank is announcing additional measures to support an orderly end of its purchase scheme”, it said in a statement...
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