UK Chancellor Alistair Darling will today announce plans to MPs for the Bank of England to swap mortgage-backed securities held on banks’ balance sheets for government bonds. In the first operation, the Bank of England will swap up to £50bn of high-rated securities backed by mortgages and credit card loans for newly-issued Treasury bills for up to three years. Senior Treasury officials told The Times that further operations up to £100bn in size were possible in the future.

Copyright The Financial Times Limited 2024. All rights reserved.
Reuse this content (opens in new window) CommentsJump to comments section

Follow the topics in this article

Comments

Comments have not been enabled for this article.