LONDON (Reuters) – The Bank of England set out operational rules on Thursday for its future programme of bond sales, which it expects to total around 10 billion pounds a quarter, subject to a final approval from policymakers this month.
The BoE confirmed it would set minimum prices it would accept for bonds at its auctions – something that it had said it was considering in its original Aug. 4 announcement – and reserved the right to cancel auctions at any time before it published results.
Britain’s bond market has seen increased volatility over the past month as prices have tumbled in the face of surging inflation, but the BoE has said it only intends to suspend the bond sale process if there is significant market turmoil.
(This story corrects time for MPC approval to “this month” from “next month”)
(Reporting by David Milliken; editing by William James)