The Bank of England issued a new statement, confirming Andrew Bailey’s remarks last night about its end of support for pension funds on Friday.
The central bank stated that other support would be available after this date. It pointed to its additional liquidity support for banking – known as the Temporary Extended Collateral Repo Facility – which it revealed on Monday.
"The Governor confirmed this position yesterday, and it has been made absolutely clear in contact with the banks at senior levels. Beyond 14 October, a number of facilities, including the new TECRF, are in place to ease liquidity pressures on LDIs."
— Bank of England Press Office (@BoE_PressOffice) October 12, 2022
Jonathan Haskel, Bank of England policymaker, has avoided questions about recent market turmoil in a speech this morning.
The official of the central bank declined to comment on Governor Andrew Bailey’s remarks about the emergency bond-buying program in Manchester.
Mixed messages from Bank have caused big swings in the Pound overnight and this morning.
Instead, Mr Haskel argued that the UK’s main problem was a lacklustre level of business innovation and productivity.
He stated that investment was behind most G7 countries prior to the financial crisis – more than a decade ago, and even more recently, just before the pandemic.
He also pointed out that these levels were lower than US investment in many sectors, particularly finance and retail.
Mr Haskel stated that the “big medium-term issue in policy is the slowdown of productivity.”
