BOE: Bond Buying Scheme Will End Friday, FPC Cites No QT Concerns

The Bank of England's bond-buying operation will end Friday as planned, wrapping up on October 14, the central bank confirmed Wednesday.

• The bond-buying scheme, which currently stands to buy up to GBP10 billion a day of Gilts, split equally between conventional and index-linked bonds, is set to end on Friday. The end date was made clear by the BOE in numerous press releases and also through comments from Governor Andrew Bailey on Tuesday, the Bank said.
• The BOE's FPC also made reference to not looking to delay planned gilt sales, due to start Oct 31, seeing no material risk to financial stability.
• Having had 13 trading days to ensure problematic pension funds bolster the resilience of their investment schemes to meet larger margin calls, the Bank is adamant this is sufficient time to have completed the process.
• Anecdotal evidence shows some modest spillover effects from pension fund asset liquidations, but no direct signs of stress
• The BOE further announced the CCyB rate will be maintained at 2% from July 2023 to ensure UK banks remain resilient in lending capacity and the Bank stands ready to vary this rate as quickly as needed.