BoE paper: corporate bond purchases boosted market liquidity


The Bank of England’s corporate bond purchase programme, launched in the wake of the UK’s Brexit referendum, appears to have supported bond market liquidity, according to a new staff working paper.

The study notes that quantitative easing (QE) programmes are not necessarily beneficial for market liquidity. While it can be helpful to have a price-insensitive buyer to back-stop the market, the authors say large purchases by central banks could also increase “search frictions” by reducing the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: