HomeEuropeBank of England announces liquidity measures to help ease pension fund issues

Bank of England announces liquidity measures to help ease pension fund issues

Bank of England Governor Andrew Bailey has said that central bank independence “is critically important.”

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The Bank of England on Monday announced further measures to ensure financial stability in the U.K., building on its intervention in the long-dated bond market.

The Bank’s Financial Stability Committee on Sep. 28 announced a two-week emergency two-week purchase program for long-dated U.K. government bonds — known as “gilts” — to restore order to the markets and protect liability driven investment (LDI) funds from imminent collapse.

The central bank announced on Monday that it would introduce further measures to ensure an “orderly end” to its purchase scheme on Oct. 14, including increasing the size of its daily auctions to allow headroom for gilt purchases ahead of Friday’s deadline.

This is a breaking news story, please check back later for more.

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