BoE to keep Gilts in check, despite booming issuance

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By Lewis McLellan
09 Apr 2020

Gilt market participants are expecting UK government borrowing to explode to close to £300bn this year. However, despite the huge supply, the Bank of England’s buying programme will prove even bigger and maintain price tension. To further ease the strain on cashflows, the Bank of England is expanding its Ways and Means Facility for the short-term.

The Ways and Means Facility is the government’s overdraft facility with the central bank. It is typically maintained at a level of around £370m for cashflow management purposes. In 2008, it peaked at £19.9bn.

Sir Robert Stheeman, chairman of the Debt Management Office said: “If required beyond normal levels, the ...

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