Bailey Risks BOE Credibility in Vow to End Gilt Buying

With his promise to stop the Bank of England's emergency gilt purchases on Friday as planned in the face of rising market demand to continue the programme

 Governor Andrew Bailey jeopardised the credibility of the institution. 

After Bailey informed pension funds that they only have "three days left" to address their liquidity issues before the bond-buying programme is suspended.

Following his comments, the pound plummeted below $1.10 for the first time since September 29 and even US stocks declined.

The Financial Times claimed that the BOE had informally advised bankers that the programme could be extended past its expiration date

but it was unclear from the report when that advice was offered.

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