BOE's Cunliffe: Closely monitoring LDI funds to ensure resilience

People stand outside the Bank of England in the City of London financial in London, Britain, October 3, 2022. REUTERS/Henry Nicholls/File Photo

LONDON, Oct 6 (Reuters) - The Bank of England is closely monitoring the progress of LDI funds to ensure they are on a sustainable footing for when the central bank ends its gilt buying operation, Deputy Governor Jon Cunliffe said in a letter published on Thursday.

"While it might not be reasonable to expect market participants to insure against all extreme market outcomes, it is important that lessons are learned and appropriate levels of resilience ensured," Cunliffe said in the letter to the chair of parliament's Treasury Committee.

Reporting by Kylie MacLellan; editing by William James

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