Central Banks
BOE’s Asset Sales Are Set to Become Bigger Headache for Treasury
- Central bank is likely to maintain or even accelerate QT sales
- BOE makes decision in September but may update on Thursday
This article is for subscribers only.
The Bank of England’s decision to bolster liquidity management tools for major financial institutions has some economists thinking the central bank could maintain or even accelerate — not slow down — its asset-sales plan under quantitative tightening.
The move, if confirmed by the BOE next month, would crystallize losses on bond sales more quickly than currently forecast, potentially adding to strains on the UK Treasury.