The Bank of England released its quarterly bulletin, titled "Corporate Bond Purchase Scheme: design, operation and impact," with the key quotes found below:
- Based on a range of metrics, we find that the CBPS (Corporate Bond Purchase Scheme) had a discernible positive impact on the sterling corporate bond market.
- Issuance in sterling by UK-domiciled PNFCs picked up sharply following the announcement, and remains robust.
- There has been an improvement in market functioning and liquidity.
- This provides some support for the view that corporate bond purchases are likely to provide a greater boost to activity, pound for pound, than an equivalent amount of gilt purchases.
- While the direct impact on the corporate bond market is encouraging, it is still too early to assess fully the transmission of the CBPS to the real economy.
- For now, the MPC has decided to maintain the stock of corporate bond purchases at £10 billion
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