Bank of England expands index-linked gilts intervention

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...