Bank of England's Bailey tells pension funds they have three days to rebalance

Record ID: 1692802

  • Title: Bank of England's Bailey tells pension funds they have three days to rebalance
  • Date: 11th October 2022
  • Summary: WASHINGTON, D.C., UNITED STATES (OCTOBER 11, 2022) (REUTERS) WHITE FLASH BAILEY WALKING THROUGH BUILDING AS REUTERS REPORTER ASKS HIM QUESTIONS REPORTER (OFF-CAMERA): "You made your comments at the event there but, but you're committed to wrapping up the program by the end of the week?" BAILEY: "Yes." REPORTER (OFF-CAMERA): "And what about the request from the Pensions and Lifetime Savings Association that it run to the end of the month, if not longer?" BAILEY: "I think they need to concentrate and do everything they need to do to be done by the end of this week." REPORTER (OFF-CAMERA): "Is there anything you would see that could make you change your mind on the thinking?" BAILEY: "They need to concentrate on being done by the end of this week."
  • Embargoed: 25th October 2022 21:39
  • Keywords: ANDREW BAILEY BANK OF ENGLAND PENSIONS AND LIFETIME SAVINGS ASSOCIATION
  • Location: WASHINGTON, D.C., UNITED STATES
  • City: WASHINGTON, D.C., UNITED STATES
  • Country: US
  • Topics: Budget/Taxation/Revenue,Government/Politics,United States
  • Reuters ID: LVA002158811102022RP1
  • Aspect Ratio: 16:9
  • Story Text:Bank of England Governor Andrew Bailey told pension fund managers to finish rebalancing their positions by Friday (October 14) when the British central bank is due to end its emergency support programme for the county's fragile bond market.
    "We have announced that we will be out by the end of this week. We think the rebalancing must be done," Bailey said at an event organised by the Institute of International Finance in Washington on Tuesday (October 11).
    "And my message to the funds involved and all the firms involved managing those funds: You've got three days left now. You've got to get this done."
    Earlier on Tuesday, the Pensions and Lifetime Savings Association, an industry body, urged the BoE to extend the bond-buying programme until Oct. 31 "and possibly beyond."
    But Bailey stressed that the programme was part of the BoE's financial stability operations, not a monetary policy tool, and had to be temporary.
    The British central bank expanded its bond-buying on Tuesday to include inflation-linked debt, almost two weeks after launching it to help pension funds cope with a slump in bond prices triggered by the announcement of unfunded tax cuts by the new government of Prime Minister Liz Truss.
    "Things seemed calmer again today," Bailey said, referring to conditions in the gilt market. "We will see."
    (Production: Pete Schroeder, Arlene Eiras)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2022. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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