Correspondence

Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 04/11/2022

Asset Purchase Facility, September 2022.

This was published under the 2022 to 2024 Sunak Conservative government

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Details

On 28 September, the Bank announced that it would carry out temporary purchases of long-dated UK government bonds (gilts) through the Asset Purchase Facility (APF) under the Bank鈥檚 financial stability objective to restore orderly conditions. Ahead of the intervention, the Chancellor confirmed the Treasury鈥檚 authorisation of an increase of up to 拢100 billion in the amount of gilts that the APF can purchase. Total gilt purchases under this new operation reached 拢19.3 billion when the daily auctions ended as planned on 14 October.聽The Chancellor and Governor have therefore agreed to reduce the authorised maximum size of the APF from 拢966 billion, as was agreed on 28 September 2022, to 拢886 billion.

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Published 4 November 2022

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