Bank of England cuts the APF ceiling to £482.4 billion

What happened

On 10 November 2026, Andrew Bailey, Governor, wrote from London to John Healey, Chancellor of the Exchequer, about the Asset Purchase Facility, and the Bank of England published the exchange the same day ^[1][3]. Bailey put APF gilt holdings at £482.4 billion as of 4 November 2026 and said the cap can fall from £524.9 billion, agreed on 5 May 2026, to £482.4 billion ^[1]. Healey replied that day, setting the cap at £482.4 billion, split as £362.4bn for monetary policy purposes and £120bn for indirect backing of banknote issuance, and recording a 46% fall, or £412.5 billion, from the January 2022 peak of £894.9 billion ^[2].

Bailey said gilts redeeming before 2035 will not be sold, leaving £120bn of the longest-dated holdings in the APF, and that the remaining plan is intended to proceed "via sales to the Government rather than to the market," subject to final agreement with HMT, with details due by April 2027 ^[1]. Healey said Bank and HM Treasury officials are still building a model whereby "all APF active gilt sales are conducted to the government and not to the market," to be reviewed before April 2027 and, if a final decision is taken to proceed, possibly folded into the DMO's annual financing remit ^[2]. He also acknowledged an MPC path of £20bn a year in purchase proceeds until the close of 2034, an average annual stock reduction of £46bn ^[2]. The APF has been indemnified by HMT since 2009, and later cash transfers will be handled under that indemnity ^[1][2].

How it affects Americans

The letters describe a UK gilt portfolio and an indemnity from HM Treasury ^[1][2]. The letters do not mention the United States, the dollar, or American interest rates ^[1][2]. The official record is a completed ceiling cut and a sales-to-government model still subject to a final decision ^[1][2]. The letters do not set out consequences for American borrowing costs ^[1][2].

The Veil Press view

The cut to £482.4 billion is a completed official adjustment ^[1][2]. The off-market sales model is not: Bailey says it still needs final agreement with HMT, and Healey says officials will review progress before April 2027, subject to a final decision to proceed ^[1][2].

Our read: the ceiling change is settled in this correspondence, while sales to the government remain a plan awaiting a final decision. The letters do not support a claim that yields in the United States, the dollar, or American borrowing costs have moved as a result. A comparison with the Federal Reserve's own balance sheet is a question, not a finding here.

What we know

Confirmed

• Letters dated 10 November 2026 were published the same day by the Bank of England ^[1][3].
• The APF cap was reduced to £482.4 billion, the gilt holdings as of 4 November 2026, from £524.9 billion agreed on 5 May 2026 ^[1][2].
• The cap is split £362.4bn for monetary policy purposes and £120bn for indirect backing of banknote issuance; gilts redeeming before 2035 will not be sold ^[1][2].
• Remaining sales are intended to go to the Government rather than to the market, subject to a final decision, with a review by April 2027 ^[1][2].
• Healey recorded a 46% reduction, or £412.5 billion, from the January 2022 peak of £894.9 billion, and an MPC path of £20bn a year in purchase proceeds until the close of 2034 ^[2].
• The APF has been indemnified by HMT since 2009, and later cash transfers will be handled under the indemnity ^[1][2].

Still being reported

None.