BOE Will Sell Off Emergency Gilt Purchases as Soon as Risk Subsides
- Ramsden signals that the BOE has no plans to hold the bonds
- Rapid sell-off to help distinguish intervention from QE
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Government bonds bought by the Bank of England to stabilize markets over coming days will be sold off as soon as “risks to market functioning are judged to have subsided,” Deputy Governor Dave Ramsden said.
In comments at a conference held by the Bank of Lithuania and Bank for International Settlements, Ramsden stressed that the purchases would be “strictly time limited” and “temporary,” an indication the BOE hopes to unwind the position relatively quickly.