Bank of England (BOE) Deputy Governor Dave Ramsden said on Thursday that the emergency purchase programme of the long-dated government bonds will be unwound in a smooth and orderly fashion once risks to market functioning are judged to have subsided.

"The UK financial assets saw significant repricing since the start of this week," Ramsden noted and added that were dysfunction in this market to continue or worsen, there would be a material risk to financial stability, as reported by Reuters.

Market reaction

The GBP/USD pair showed no immediate reaction to these comments and was last seen losing 0.15% on the day at 1.0872.