View more on these topics

Bank launches £75bn asset buy up scheme

The Bank of England has revealed it will begin to buy up bank assets in return for £75bn in newly printed Treasury bills.

For the first time in UK history the Bank will enact its new powers which will allow it to add money into the market as well as change the Base Rate.

At its March meeting, the Monetary Policy Committee agreed that the February Inflation Report had implied a substantial risk of undershooting the 2 per cent CPI inflation target in the medium term and that a further easing in monetary policy was likely to be needed. As a result, it decided to reduce Bank Rate by 0.5 percentage points, to 0.5 per cent and to inject £75bn into the market.

The MPC says this might take up to three months to carry out this programme of purchases. Part of the sum will finance the Bank of England’s programme of private sector asset purchases through the Asset Purchase Facility, but the Bank would also buy medium- and long-maturity conventional gilts in the secondary market. It is likely that the majority of the overall purchases by value over the next three months will be of gilts.

At its future meetings, the MPC says it will monitor the effectiveness of this purchase programme in boosting the supply of money and credit.


Myths of the RDR

The FSA released its final feedback statement (FS08/06) on the retail distribution review last November. Since then, there have been numerous articles and discussions on the likely impact on the industry in general and financial advisers in particular.

Exemption to the rule

With the approach of the end of the tax year on April 5, clients considering any form of inheritance tax planning would be well advised to make certain that they use their exemptions.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm