BoE’s Ramsden: gilt purchases will be strictly time-limited

LONDON (Reuters) – The Bank of England’s new programme of long-dated government bond purchases will be strictly time-limited and unwound once risks of market dysfunction have faded, Deputy Governor Dave Ramsden said on Thursday.

Ramsden’s remarks, in a speech at a Bank of Lithuania conference, largely echoed a statement released by the BoE on Wednesday.

“These purchases will be strictly time-limited,” Ramsden said.

“They are intended to tackle a specific problem in the long-dated government bond market. The purchases will be unwound in a smooth and orderly fashion once risks to market functioning are judged to have subsided,” he added.

(Reporting by David Milliken; Editing by William Schomberg)