Central Banks

BOE to Take Historic Step in Unwinding £838 Billion Stimulus

UK central bank plans first bond sales from its QE portfolio
Delicate time for sales just after market turmoil over deficit

WATCH: The BOE is planning the first bond sale from its QE portfolio, becoming the first major central bank to sell off assets accumulated during a 13-year-old stimulus program. Lizzy Burden reports.Source: Bloomberg

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By Greg Ritchie

November 1, 2022 at 5:00 AM UTC

Updated on

November 1, 2022 at 11:51 AM UTC

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The Bank of England on Tuesday is set to become the first major central bank to sell off assets accumulated during a 13-year-old stimulus program, providing a test case for how quickly markets can shift away from easy-money policies.

The UK central bank, which was buying gilts as recently as a few weeks ago to soothe market stress, plans an auction of the first £750 million in short-maturity securities it wants to unload. Results of the operation are due about 3 p.m. in London.