BoE responds to Treasury Committee on expanded emergency bond buying

In a letter to BoE deputy governor Sir Jon Cunliffe on 11 October, Treasury Committee chair Mel Stride asked how the bank judged it necessary to expand its intervention in gilt markets. Last Monday (10 October), the BoE announced a series of additional financial stability measures, including that it would extend its daily gilt purchases to include index-linked gilts. In his response, Cunliffe wrote that these measures were intended to enable liability-driven investment (LDI) funds to address risks to their resilience from volatility in the long-dated gilt market, and support an orderl...