© Reuters. FILE PHOTO: Britain’s Deputy Governor of the Bank of England Jon Cunliffe speaks during the Bank of England’s financial stability report at the Bank of England in the City of London, Britain June 27, 2017. REUTERS/ Jonathan Brady/Pool/File Photo
LONDON (Reuters) – The Bank of England will unwind its gilt market intervention when risks to market functioning have subsided and based on an assessment of market conditions and the scale of purchases it has made, the bank said in a letter published on Thursday.
“Once the purchase programme is complete, the operation will be unwound in a smooth and orderly fashion once risks to market functioning are judged by the bank to have subsided,” BoE Deputy Governor Jon Cunliffe said in a letter sent to parliament’s Treasury Committee.
“The approach to unwind will depend, among other things, on the scale of actual purchases, the market conditions during those purchases and the market conditions when the purchases end.”