Economics

Bank of England boosts bond purchases programme amid ‘fire sale’ risk

Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” the BOE said.

The Bank of England added inflation-linked government bonds to its programme of bond purchases after a fresh attempt to extend support to pension funds failed to assuage worried investors.

The central bank on 11 October said it would buy up to £5bn of index-linked gilts each day through to 14 October, equivalent to $5.5bn. On 10 October, the bank doubled the total daily amount of bonds it could buy to £10bn.

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