The Bank of England said on Thursday it would initially focus on buying corporate bonds, commercial paper and paper issued under the credit guarantee scheme as part of its asset-buying programme to get credit flowing again.

Finance minister Alistair Darling last week sanctioned a 50 billion pound fund to be operated by the central bank to buy high-quality assets in a bid to get jammed-up credit markets working again.

In a letter to Darling on Thursday, BoE Governor Mervyn King said details of the mechanisms through which the central bank will work will be set out next week.

"The Bank will focus initially on purchases of corporate bonds, commercial paper, and paper issued under the CGS (Credit Guarantee Scheme," he said.

"I hope that by offering to purchase assets on a regular and ongoing basis, the facility should help to improve market liquidity."

He added that the BoE would keep under review whether it needed to use the framework of the asset purchase scheme for monetary policy purposes.