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Market Extra: Failed BOE bond purchase puts another crack in image of central banks

The mystique of central banks and their ability to influence markets is taking a hit.

On Tuesday, the Bank of England failed to buy as many bonds as it wanted in its latest round of QE, intended to deal with the implications of the U.K.’s vote to leave the European Union. The central bank planned on purchasing £1.17 billion in long-term bonds maturing in at least 15 years, but was only able to scoop up £1.12 billion.

The failure of the BOE to purchase as many bonds as it hoped not only highlighted the limitations of central banks’ QE purchases, but also created the impression of potential scarcity of long-term U.K.

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