The Bank of England (BoE) has confirmed that its gilt buying operation will end on Friday 14th October despite continued market volatility.
In the past few days the central bank has been forced to ramp up its operation as it looks to shore up pension funds.
This has led some commentators to speculate that the BoE would continue beyond its original deadline of Friday.
The Financial Times also published a story stating that Governor Andrew Bailey had signalled privately that the scheme would be extended.
However, in a statement the Bank confirmed will be closing as planned.
It said: “As the Bank has made clear from the outset, its temporary and targeted purchases of gilts will end on 14 October. “As the Bank has made clear from the outset, its temporary and targeted purchases of gilts will end on 14th October.
“The Governor confirmed this position yesterday, and it has been made absolutely clear in contact with the banks at senior levels.
“Beyond 14th October, a number of facilities, including the new TECRF, are in place to ease liquidity pressures on LDIs.”
