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UK: BoE to buy UK inflation-linked government bonds


GB: The BoE will buy British government bonds linked to inflation |  Photo credits: Bank of England

GB: The BoE will buy British government bonds linked to inflation | Photo credits: Bank of England

LONDON, Oct 11 (Reuters) – The Bank of England (BoE) announced on Tuesday that it was extending its emergency UK bond purchase program to include inflation-linked bonds.

The central bank said it would buy from Tuesday up to 5 billion pounds sterling (5.7 billion euros) of indexed “gilts” (British government bonds) per day, alongside purchases of the same magnitude of long-term conventional bonds.

“These additional operations will serve to restore orderly market conditions by temporarily absorbing sales of index-linked gilts that exceed the market’s intermediation capacity,” the BoE said in a statement. (Andy Bruce and Paul Sandle, French version Laetitia Volga, editing by Kate Entringer)





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