In a dramatic policy U-turn, the Bank of England is resuming gilt purchases. This provides a potential exit door to the nascent UK financial crisis, though this may require the Bank to go even further. Nevertheless, an inter-meeting rate hike remains unlikely despite ongoing concerns about sterling weakness. Much needed relief for the gilt market: Better late than never. The Bank of England (BoE) has acknowledged the distressed trading conditions in the gilt market and announced it will carry out gilt purchases over the next two weeks, starting today. If this sounds like a U-turn, that's because it is. As we have ... (full story)