The Bank of England sowed confusion in the gilts markets on Thursday, announcing it would suspend its £125bn asset purchase programme, at least for now, but offering no clue to its future thinking. UK government bonds sold off sharply after the Bank disappointed investors by failing to increase its quantitative easing programme, the FT said. Lex believes the Bank may only be pausing for breath, while FT Alphaville noted the gilt purchase programme accounted for almost 10 per cent of UK GDP.

This entry was posted by Stacy-Marie Ishmael on Friday, July 10th, 2009 at 4:43 and is filed under Capital markets. Tagged with bank of england, gilts, quantitative easing, UK. Edit this entry.