Skip to content

Bank of England Begins Talks With Debt Office on Sales of QE Bonds

  • Bank will consider active sales once interest rates hit 1%
  • Markets currently expect that threshold to be reached in May
Commuters Return To The City of London Financial District in 2022
Photographer: Hollie Adams/Bloomberg

The Bank of England has begun talks with the U.K. Debt Management Office and the Treasury over how to handle active sales of bonds held in its quantitative easing portfolio, according an official with knowledge of the matter.

The discussions come as the central bank last week said it would begin running down its 875 billion pounds ($1.2 trillion) of government bond holdings for the first time by letting expired gilts fall off its balance sheet, and reiterated it would consider active sales once interest rates hit 1%.