Bank to sell and buy corporate bonds

 

The Bank of England said on Tuesday that it would offer to sell some of the corporate bonds it has bought from January 8 onwards to boost market liquidity, though it would continue to make purchases as well.

The central bank has consulted on expanding its market-making assistance to include selling small quantities of corporate bonds as well as buying them.

The Bank said Tuesday's move did not have wider implications for its 200 billion pound quantitative easing policy, which is overwhelmingly focussed on British government bonds.