Gilt-Edged Market

3.8 HM Treasury and the remit of the DMO

In May 1997 the BoE was granted independent powers for the setting of interest rates. At the

same time the government began the process of transferring the Bank's responsibility for

debt and cash management to the newly-created DMO, which process was completed in

April 1998. From that date the responsibility for gilt issuance was taken over by the DMO.

The role of the DMO covers all official operational decision-making in the gilt market. From

the last quarter of 1999 the DMO also assumed responsibility for cash management for HM

Government.

The DMO is an executive agency of HM Treasury. Its remit appears in ...