Asset Purchase Facility
In January 2009, the Chancellor of the Exchequer authorised the Bank to set up an Asset Purchase Facility (APF) to buy high-quality assets financed by the issuance of Treasury Bills. The aim of the Facility was to improve liquidity in credit markets. The Chancellor also announced that the APF provided an additional tool that the Monetary Policy Committee (MPC) could use for monetary policy purposes. When the APF is used for monetary policy purposes, purchases of assets are financed by the Bank creating money, rather than by issuance of Treasury Bills. For more information see Quantitative Easing Explained.
Following an exchange of letters published on 5 March, the Chancellor authorised the MPC to use the APF for monetary policy purposes. For more information see Asset Purchase Facility Key Resources.
The Asset Purchase Facility transactions are undertaken by a subsidiary company of the Bank of England – the Bank of England Asset Purchase Facility Fund Limited (BEAPFF). For more information on the impact APF purchases have on the Bank of England’s balance sheet see Balance Sheet impact.
| Quantity of assets purchased by the creation of central bank reserves Breakdown of assets purchased & results of APF operations |
 £200,020mn4 February 2010 |
|
| Latest gilt purchase results Results from all gilt purchase operations |
£1,700 mn 26 January 2010 |
Latest Information
- Market Notice: Asset Purchase Facility
Corporate Bond Secondary Market Scheme
(28k)
22 December 2009 - Latest APF operational announcements
- Schedule of operations
- Latest Quarterly Report
Information for participants
