Speculation has been growing that the Bank of England might announce an extension of its emergency gilt-buying programme which is set to end on Friday. Despite the Treasury moving forward its ‘medium-term fiscal plan’ announcements from November to the end of this month, gilt yields have been rising yet again this week in the lead-up to the end of the scheme. It seemed likely that the Bank’s gilt-buying programme might be extended for another two weeks as a result, in order to buy time before the Chancellor Kwasi Kwarteng’s announcement on 31 October.
But tonight Andrew Bailey put that speculation to bed. Speaking at the Institute of International Finance in Washington DC, the Bank’s Governor confirmed that the emergency intervention is coming to an end on Friday. He also issued a blunt warning to pension funds about the timeline.
Bailey’s clear message to the markets tonight should, in theory, take some of the mystery out of what will happen on Friday
‘My message to the funds involved and all the firms involved managing those funds: You’ve got three days left now,’ he said.
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