© Reuters. FILE PHOTO: People walk past Bank of England in the City of London financial district in London, Britain, October 27, 2022. REUTERS/Maja Smiejkowska
LONDON (Reuters) – The Bank of England set out operational details on Wednesday of its plans to start selling some of the 19 billion pounds ($23 billion) of long-dated and index-linked gilts which it bought last month to stabilise financial markets. The central bank had previously said sales would begin in the week starting Nov. 29, and that the volume sold would depend on demand from investors – in contrast to its fixed auction schedule to sell gilts bought for quantitative easing purposes. Wednesday’s announcement confirmed this timetable. The BoE plans to offer gilts for sale on Tuesdays, Wednesdays and Fridays, giving minimum prices that it will accept before each sale.
The BoE added that it would not sell a gilt which had fallen sharply in price on the day of the sale, or if there had been an auction the same day for that category of gilt. ($1 = 0.8311 pounds)