Long-term UK government bond yields appear to have been suppressed by about 40bp to 100bp by the Bank of England as a result of its unorthodox monetary policies, an IMF study has found. These policies have left the Bank holding a large chunk of the total UK government bond market, but it is unclear whether the Bank’s moves have helped to boost the economy – even though such measures were unexpectedly extended last week, with the announcement of another £50bn in gilts purchases.

This entry was posted by Gwen Robinson on Wednesday, August 12th, 2009 at 4:58 and is filed under Capital markets. Tagged with bank of england, IMF. Edit this entry.