The Bank of England (BoE) released a statement on Monday (17) about the end of operations to buy Gilts, as bonds issued by the British government are known.
Started on September 28 with the aim of calming the financial markets, the program ended last Friday (14) as scheduled.
“At the start of the intervention, the Bank said it would undertake temporary purchases on any scale that was necessary to restore orderly market conditions,” the note states.
According to the text, the purpose of the operations was to support funds that use investment strategies based on debt (LDI) – of which pension funds stand out.
The instrument also sought to mitigate volatility in the Gilts market, but it was not designed to be permanent.
“As intended, these operations allowed a significant increase in the sector’s resilience”, he emphasizes.
The BoE adds that the Temporary Expanded Collateral Program (TECRF) will run until November 10 and that banks will have other tools to access liquidity.9
Source: CNN Brasil
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