via Monetary policy in the UK: “The Asset Purchase Facility (APF) was announced on 19 January 2009 with the objective of increasing the availability of corporate credit, in order to support the Bank of England’s responsibilities for financial stability and monetary stability in the UK. At the request of the Monetary Policy Committee (MPC), the APF was expanded on 3 March 2009 to enable the MPC to use it for monetary policy purposes, financing asset purchases by the issuance of central bank reserves, in order to meet the inflation target in the medium term. On 5 July 2012, the Government published letters exchanged between the Chancellor of the Exchequer and the Governor of the Bank of England that authorise the MPC to increase the ceiling on the scale of asset purchases through the APF financed by the issuance of central bank reserves.

• Letter from the Chancellor of the Exchequer to the Governor of the Bank of England 05/07/12
• Letter from the Governor of the Bank of England to the Chancellor of the Exchequer 05/07/12 (Bank of England website, opens in a new window)
• Related postings on financial system