At its meeting ending on 4 November 2020, the Monetary Policy Committee (MPC) agreed to additional monetary policy stimulus measures in order to meet its statutory objectives. In light of this, I am writing to request a number of changes to the authorisation of the Asset Purchase Facility (APF) and confirm some existing arrangements about how the Facility is used. Existing Authorisations As set out in your letter of 18 June 2020, the APF is currently authorised to purchase up to £745 billion of assets financed by the creation of central bank reserves. Assets eligible for purchase under this arrangement include gilts ... (full story)

Thank you for your letter of 5 November, setting out the Monetary Policy Committee’s (MPC) case for its decision to raise the limit on purchases that may be undertaken by the Asset Purchase Facility (APF). Your letter explains that the MPC judged that a further easing of monetary policy is warranted, and that further asset purchases financed by the issuance of central bank reserves should be undertaken to enable the MPC to deliver the stimulus it considers necessary to meet its statutory objectives. Alongside the actions the Bank is taking, I reiterate that as Chancellor of the Exchequer my priority is to support the ... (full story)