The sale of government bonds has been moved to November 1 due to the fiscal announcement coming later this month, the Bank of England has said.
The UK's central bank had been due to start buying government bonds, called gilts, on October 31.
The move follows denials from the bank earlier on Tuesday that it would postpone the bond sale programme in an attempt to allow battered gilt markets to recover following the chaos unleashed by the government's mini-budget.
“The first gilt sales operation was scheduled to take place on October 31 and proceed thereafter,” the bank said in a statement on Tuesday evening.
“In light of the government’s fiscal announcement now scheduled for October 31, the first gilt sale operation will now take place on November 1.”
Chancellor Jeremy Hunt is set to unveil the fiscal announcement at the end of the month, which will backtrack on a serious of previous tax cut plans after predecessor Kwasi Kwarteng’s mini-budget shook market traders.
The Bank of England update came after senior officials at the central bank were reported to have decided to delay the plan to offload at the end of this month some of its £838 billion ($948bn) in UK government bonds bought under the so-called quantitative easing programme.
As part of its emergency bond-buying action launched late last month, the bank said it would postpone this plan — known as quantitative tightening — from October 3 until the end of October.
Chancellor of the Exchequer Jeremy Hunt — in pictures
The Financial Times reported that it was now expected to put quantitative tightening back further after senior figures at the bank look to give more time for the “very distressed” gilt markets to recover.
But the bank dismissed the report early on Tuesday, sending the pound lower, to $1.126 at one stage and affecting gilts after Monday’s bounceback.
The pound has since rebounded to $1.132, but the bond markets were shut at the time of the bank’s new statement.
“This morning’s FT report that the BoE has decided to delay MPC gilt sales … is inaccurate,” a bank spokesman said on Tuesday before the announcement.
Experts and investors have been increasingly calling for the bank to hold its quantitative tightening plan, given fears that it could trigger another sell-off of gilts.
Gilts rallied on Monday as financial markets were placated by Mr Hunt’s emergency statement, with yields on 30-year government bonds dropping by about 10 per cent.
But the rebound has still not undone the impact of the recent market turmoil, with yields significantly higher than the 3.75 per cent level seen before Mr Kwarteng unveiled his disastrous mini-budget on September 23, and rising back up by another 0.5 per cent on Tuesday.
The latest reaction to the Bank’s quantitative tightening denial shows how delicate the gilt markets still are.
What does the UK public think of Jeremy Hunt's changes? — video
Former pensions minister Baroness Ros Altmann is among those who have urged the bank to completely halt its plan to offload £80bn in gilts.
She recently told the PA news agency: “With £80bn of gilt sales overhanging the market, there’s every likelihood the market will plunge again.
“The bank must put its QT [quantitative tightening] on hold … not telling markets that it isn’t about to step into the market with £80bn of sales would invite further chaos.”
But the bank is thought to be keen to show its independence from the government and focus on its priority to fight rampant inflation through interest rate rises and reducing its balance sheet of bonds built up through quantitative easing.
Separately on Tuesday, deputy governor Sir Jon Cunliffe told the Treasury Committee that the bank was continuing to monitor developments in conventional and index-linked gilt markets this week after its emergency bond-buying programme ended on October 14.
In a letter to committee chairman Mel Stride, Sir Jon said: “The bank and the FPC [Financial Policy Committee] will continue to monitor market conditions, channels through which vulnerabilities could amplify future market stresses, and domestic and international progress towards reforms in the NBFI [non-banking financial institution] sector.”
The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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THE DETAILS
Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5
RESULTS
6.30pm: Meydan Sprint Group 2 US$175,000 1,000m
Winner: Ertijaal, Jim Crowley (jockey), Ali Rashid Al Raihe (trainer)
7.05pm: Handicap $60,000 1,400m
Winner: Secret Ambition, Richard Mullen, Satish Seemar
7.40pm: Handicap $160,000 1,400m
Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.15pm: Dubai Millennium Stakes Group 3 $200,000 2,000m
Winner: Folkswood, William Buick, Charlie Appleby
8.50pm: Zabeel Mile Group 2 $250,000 1,600m
Winner: Janoobi, Jim Crowley, Mike de Kock
9.25pm: Handicap $125,000 1,600m
Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer
RESULT
Bayern Munich 0 AC Milan 4
Milan: Kessie (14'), Cutrone (25', 43'), Calhanoglu (85')
Teaching in coronavirus times
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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UAE currency: the story behind the money in your pockets
Naga
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Company%20Profile
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
Essentials
The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing.
LA LIGA FIXTURES
Friday Celta Vigo v Villarreal (midnight kick-off UAE)
Saturday Sevilla v Real Sociedad (4pm), Atletico Madrid v Athletic Bilbao (7.15pm), Granada v Barcelona (9.30pm), Osasuna v Real Madrid (midnight)
Sunday Levante v Eibar (4pm), Cadiz v Alaves (7.15pm), Elche v Getafe (9.30pm), Real Valladolid v Valencia (midnight)
Monday Huesca v Real Betis (midnight)
Russia's Muslim Heartlands
Dominic Rubin, Oxford
