Number 10: BoE announcement will bring bond-buying scheme to ‘orderly end’
The Bank of England’s decision to extend its emergency bond-buying scheme today will bring the programme to an “orderly end”, according to Liz Truss’ official spokesperson.
The Number 10 official told journalists today that today’s announcement was “in line with” the Bank’s “financial stability objective”.
The central bank announced this morning it would purchase an extra £5bn of index-linked government bonds to further stabilise the UK’s gilt market.
The Bank’s £65bn bond-buying programme was due to come to an end on Friday, which sparked a wide sell-off of UK gilts and further increases in bond yields.
A spokesperson from the Bank of England said the extension of the programme was necessary to halt “dysfunction in this market”, after “a further significant repricing of UK government debt” this week.
Truss’ spokesperson said: “The additional measures announced today will support an orderly end to the Bank of England’s temporary purchase scheme.
“We are in close contact with the Bank, who will monitor markets in the coming days.”
Truss did not raise the Bank of England’s choice to extend its emergency bond-buying programme in today’s cabinet meeting, according to Number 10.
A senior Labour source said that “this is a total dereliction of duty”.
“The cabinet are the only people in the country not talking about the Prime Minister and her chancellor’s economic carnage. It tells you all you need to know about this utterly useless government,” they said.