Record Cash Demand Spurs Speculation BOE Will End Bond Sales
- Banks took a record £12.2 billion in BOE funding this week
- Natwest Markets expects BOE to vote to end active QT in Sept.
Production of new King Charles III £10 banknotes.
Source: Bank of EnglandThis article is for subscribers only.
Demand for cash from the Bank of England jumped to a record £12.2 billion ($15.3 billion) on Thursday, the latest in a string of increases that may spur policy makers to ease financial conditions through the bond market within months, analysts say.
The BOE will opt to end its weekly bond sales later this year, which will act in tandem with interest-rate cuts to loosen monetary policy, according to Deutsche Bank AG and NatWest Markets.