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

Documents

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

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

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

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’s financial stability objective to restore orderly conditions. Ahead of the intervention, the Chancellor confirmed the Treasury’s authorisation of an increase of up to £100 billion in the amount of gilts that the APF can purchase. Total gilt purchases under this new operation reached £19.3 billion when the daily auctions ended as planned on 14 October. The Chancellor and Governor have therefore agreed to reduce the authorised maximum size of the APF from £966 billion, as was agreed on 28 September 2022, to £886 billion.

Updates to this page

Published 4 November 2022

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