Tag Archive for Bank of England

Bank of England to Sell All Remaining Bonds and Use Repos Instead to Manage Liquidity & Financial Stability

by Wolf Richter • May 25, 2024 • 117 Comments

Back to the future: With repos, not QE, is how central banks handled issues before 2008. The Fed also revived tools to go back into that direction.

Bank of England Sold All Bonds it Bought Last Fall amid Pension Crisis, First Big Central Bank to Sell Government Bonds Outright

by Wolf Richter • Jan 12, 2023 • 110 Comments

At first in baby steps, and then in big chunks. Remember the “pivot to QE” mongers at the time? What a hoot.

Bank of England Sold Bonds Outright Today to Speed up QT, Will Sell More at Regular Auctions: First Major Central Bank to Sell Bonds Outright

by Wolf Richter • Nov 1, 2022 • 99 Comments

It went fine. Gilt yields are way down from panic highs. Another dream of the “pivot” mongers goes to heck.

Bank of England Bought Only Small Amounts of Bonds even Today, Warns Pension Funds They Have “Only Three Days Left” to Unwind Derivatives with BOE Support

by Wolf Richter • Oct 11, 2022 • 104 Comments

BOE is caught between 10% inflation it needs to crack down on with rate hikes & QT and a crisis over derivatives that leveraged UK pension funds blew their brains out with.

Bank of England Explains Why Intervention Wasn’t Pivot to QE, But Effective Effort to Halt Death Spiral Triggered by Tax-Cut Panic in Gilt Market: Bond Purchases Near Zero this Week

by Wolf Richter • Oct 6, 2022 • 73 Comments

Underlying pension fund issues can now be dealt with in an orderly fashion.

Bank of England Bought No Bonds Today, after Buying only £22 Million on Monday, instead of £5 Billion per Day

by Wolf Richter • Oct 4, 2022 • 107 Comments

Carefully communicating this isn’t a Pivot to QE but a temporary “backstop” to calm a panic. And it calmed the panic with minimal purchases.

UK Chaos Economics: Fretting over “Financial Stability” & “Contagion” after Gilts Plunged, Bank of England Buys Bonds

by Wolf Richter • Sep 28, 2022 • 262 Comments

It wasn’t big hedge funds that blew up, but £1.5 trillion in leveraged pension funds. BoE stepped in to bail them out and prevent further contagion.

UK Bond Yields Do Monster Spike, Pound Plunges as Bond Vigilantes Rise from Graves, Go after Government’s Fiscal Recklessness

by Wolf Richter • Sep 26, 2022 • 127 Comments

Bank of England: won’t “hesitate” to hike rates “as much as needed.” Bond market fears much higher inflation and interest rates, for much longer.