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)