Bank of England expands temporary intervention to index-linked gilts

50:50 split

James Baxter-Derrington
clock • 1 min read

The Bank of England has expanded its temporary gilt purchase operations to include index-linked gilt to stave off “dysfunction” in the debt market.

According to a statement published this morning (11 October), the Bank will carry out purchases of index-linked gilts for the remainder of the intervention, buying both index-linked and conventional gilts until 14 October 2022. The expanded policy has been brought in to prevent "dysfunction" in the market, which has already seen "further significant repricing of UK government debt" this week. Alongside dysfunction, the Bank hopes the move will prevent "self-reinforcing ‘fire sale' dynamics" from taking hold. Sterling currency crisis looms: Can the Bank of England steady the ship? ...

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