Bank of England expands index-linked gilts intervention

Intervention expanded to stave off 'dysfunction' in the debt market

James Baxter-Derrington
clock • 1 min read

The Bank of England has expanded its temporary gilt purchase operations to include index-linked gilt to stave off “dysfunction” in the debt market.

According to a statement published this morning (11 October), the Bank will carry out purchases of index-linked gilts for the remainder of the intervention, buying both index-linked and conventional gilts until 14 October 2022. The expanded policy has been brought in to prevent "dysfunction" in the market, which has already seen "further significant repricing of UK government debt" this week. Alongside dysfunction, the Bank hopes the move will prevent "self-reinforcing ‘fire sale' dynamics" from taking hold. Yesterday (10 October), the daily limit of the purchasing scheme was incre...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Navigating an uncertain environment: Applying a disciplined, data-driven approach

Navigating an uncertain environment: Applying a disciplined, data-driven approach

'​Looking ahead, the fundamental case remains constructive'

Fahad Hassan
clock 28 April 2026 • 2 min read
UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

Motor fuel rose 4.7%

Michael Nelson
clock 22 April 2026 • 2 min read
UK inflation data for February 'little more than a relic' as it holds at 3%

UK inflation data for February 'little more than a relic' as it holds at 3%

Uncertainty over central bank rates

Michael Nelson
clock 25 March 2026 • 3 min read