BUDGET '09: Shock as Govt to issue £220bn of gilts

With public borrowing expected to soar above £170bn over the next year, Chancellor Alistair Darling has announced the Government will be forced to issue £70bn of more gilts than the Debt Management Office estimated last month. At its March meeting, the MPC decided to initiate the purchase of £75bn of assets using central bank reserves. As of 16 April 2009, the Bank of England had purchased £2.4bn of commercial paper, £0.5bn of corporate bonds and £31.5bn of gilts. IFAonline