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.
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