LONDON- The Bank of England said on Wednesday that it would rethink its approach to the purchase of corporate bonds issued by businesses which have a large impact on the climate, after the government asked it to take greater account of environmental policy.
Finance minister Rishi Sunak asked the BoE to "reflect the government's economic strategy for achieving strong, sustainable and balanced growth that is also environmentally sustainable and consistent with the transition to a net zero economy".
In a statement in response, the BoE said it would provide more information on how it might change its 20 billion pounds ($27.9 billion) of corporate bond holdings "with a view to adapting our approach by the time of our next scheduled round of reinvestment operations in 2021 Q4". ($1 = 0.7166 pounds)
(Reporting by David Milliken Editing by William Schomberg) ((email@example.com; +44 20 7542 5109; Reuters Messaging: firstname.lastname@example.org))