HM Treasury and Bank of England cut authorised ceiling for Asset Purchase Facility
Published · Updated
What happened
HM Treasury released correspondence confirming agreement with the Bank of England to lower the maximum authorised size of the Asset Purchase Facility. The APF is the vehicle through which the Bank conducted large-scale asset purchases, with Treasury indemnity backing losses and cash flows.
Why it matters
The announcement changes the formal limit around a balance-sheet tool linked to gilt holdings, Treasury exposure, and the pace of crisis-era unwind. It gives markets a new official reference point for how the UK authorities are aligning fiscal backstops with ongoing monetary tightening.
HM Treasury published a letter exchange on 10 November 2026 confirming that the Chancellor and the Bank of England Governor agreed to reduce the maximum authorised size of the Asset Purchase Facility. The change is operational, but it updates the formal envelope governing the crisis-era gilt purchase vehicle as quantitative tightening continues. Because the APF sits at the junction of Treasury indemnities, gilt supply, and Bank balance-sheet reduction, the announcement is relevant to fiscal presentation and market interpretation.
Watch for
Bank of England publication of updated APF stock or gilt-sales operational data by 2026-11-14 UK Debt Management Office auction results and bid-to-cover ratios at the next gilt sale by 2026-11-14 HM Treasury clarification or technical note on APF indemnity treatment and authorised limit by 2026-11-14 UK 10-year gilt yield move relative to same-day euro-area sovereign peers through 2026-11-14
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