UK Markets open in 6 hrs 49 mins
  • NIKKEI 225

    26,739.03
    +336.19 (+1.27%)
     
  • HANG SENG

    20,717.24
    +596.56 (+2.96%)
     
  • CRUDE OIL

    110.35
    +0.46 (+0.42%)
     
  • GOLD FUTURES

    1,845.10
    +3.90 (+0.21%)
     
  • DOW

    31,261.90
    +8.77 (+0.03%)
     
  • BTC-GBP

    23,526.04
    -101.28 (-0.43%)
     
  • CMC Crypto 200

    650.34
    -23.03 (-3.42%)
     
  • Nasdaq

    11,354.62
    -33.88 (-0.30%)
     
  • ^FTAS

    4,083.84
    +44.90 (+1.11%)
     

BoE will not sell gilts into unstable markets, Bailey says

·1-min read
FILE PHOTO: Bank of England (BoE) building seen in London

LONDON (Reuters) - Any future programme of bond sales from the Bank of England should be suspended during periods of market turbulence, BoE Governor Andrew Bailey said on Friday during a panel discussion hosted by the International Monetary Fund.

The BoE has said it will consider a programme of active sales from its more than 800 billion pounds ($1.03 trillion) of government bond holdings once it has raised its main interest rate to 1% -- an increase economists expect to occur on May 5.

"We can't have a constant ratchet upwards of central bank balance sheets and they never come down. They're a counter-cyclical tool, and we have got to manage them counter-cyclically," Bailey said.

"From my own perspective, we're always going to have to have ... a knockout clause which says we'll do it while we're in stable markets but we'll reserve the right to cease doing it if we see conditions change, because I think that's just, frankly, common sense," he added.

($1 = 0.7781 pounds)

(Reporting by David Milliken; Editing by William Schomberg)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting