Economics

BOE Has a Powerful Tool to Tighten Policy Without Raising Alarm

Halting gilt reinvestments would drain stimulus from economy
Policy makers indicated tightening likely within three years

Bank of England Interest As Central Bank Set to Step Toward Tightening — Photographer: Hollie Adams/Bloomberg

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By David Goodman, James Hirai, and Libby Cherry

August 10, 2021 at 4:00 AM UTC

Updated on

August 10, 2021 at 8:07 AM UTC

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Inaction could be a powerful option for Bank of England officials looking to scale back stimulus for the economy and shrink their swollen balance sheet.