Treasury Committee grills BoE on bond-buying expansion

Letter to Jon Cunliffe

The Treasury Committee has sent questions to the Bank of England, following the announcement that it would expand maximum daily gilt purchases from £5bn to £10bn.

This week, the bank said that, along with the maximum purchase rise, it would launch a Temporary Expanded Collateral Repo Facility (TECRF) and extend its daily gilt purchases to include index-linked gilts, which would end on Thursday 10 November. In the letter, the chair of the Treasury Committee Mel Stride asked the Bank's deputy governor for financial stability Jon Cunliffe for an update on the interventions, and requested they explained  to what extent "further action will be required to prevent risks to financial stability". The committee also asked Cunliffe to explain how the ban...