• 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.