BOE announces to carry out temporary purchases of long-dated UK government bonds

• The purpose of these purchases will be to restore orderly market conditions
• The purchases will be carried out on whatever scale is necessary to effect this outcome
• These purchases will be strictly time limited
• Auctions will take place from today until 14 October
• The MPC’s annual target of an £80bn stock reduction is unaffected and unchanged
• The beginning of gilt sale operations has been postponed to 31 October (first sale)
• Full statement

And back to QE, well sort of, here we go. Gilt yields have fallen on the announcement with 10-year yields now down to 4.37% from around 4.55% before that. The pound caught a bit of a whipsaw to 1.0838 before holding around 1.0680 now as the BOE action here is pretty much just to accommodate the recent fiscal moves by the government - since QT would be in contradictory to that.

/GBP GBP The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth The Great British pound (GBP) or pound sterling is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, Gibraltar, South Georgia, and other pacific territories.The GBP is currently the fourth most-traded currency worldwide in forex markets after the US dollar, euro, and Japanese yen.As the oldest currency in continual use, the GBP holds great weight on the world market and is also the fourth largest reserve currency.The Bank of England (BoE) is the central banking auth Read this Term