MNI: BOE Sticks With Friday Guidance To End Long Gilt Buys

The  Bank of England is not backing down over its Friday deadline for long-dated gilt buying, which it has stressed is a financial stability operation, the Bank of England confirmed Wednesday.

There has been speculation that the Bank would be flexible over the deadline but the BOE issued a statement flatly contradicting this and while purchases of gilts by the Bank have been a low levels so far the likelihood is that these will pick-up in the closing days of the scheme .

The BOE's Financial Policy Committee, at its September meeting, also made no reference to market concerns over its planned gilt sales, due to start from October 31, suggesting that it is not minded to delay this.

Banks Resilient, Households Vulnerable

In the record of the Bank's Financial Policy Committee meeting of Sep 30, the FPC highlighted the resilience of the UK banking sector and the vulnerability of UK households as interest rates rise.

The FPC warned that households with a combination of debt interest and non-discretionary costs. including energy bills, rising to 70% of their income could reach pre-Global Financial Crisis peaks if interest rates stayed where they are now.