Listen to article
The Bank of England is hoping a safety net in the form of short-term cash infusions will stabilize markets when it winds down its emergency bond-buying program on Friday. Bankers and investors are skeptical it will work.
The Bank of England launched a what it called a temporary repo facility on Monday when volatility rocked the U.K.’s government debt markets. Investors worry about a so-called cliff edge for government bonds once the BOE stops buying them on Friday, ending a program it introduced in late September after a whirlwind selloff that threatened the U.K.’s financial stability. The repo facility is scheduled to run until Nov. 10, helping to cushion the transition.
This article was written by and originally published on www.wsj.com