Central Banks
BOE Grapples With Pace of Gilt Wind-Down in Key UK Budget Issue
- Markets expect £100 billion gilt wind-down pace for next year
- But some analysts warn BOE may go faster at Sept. 19 decision
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The Bank of England is about to grapple with one of the thorniest decisions since it began unwinding crisis-era stimulus in 2022 as it confronts a year of unusually high bond redemptions.
Governor Andrew Bailey and his colleagues will decide this month whether to keep the run-off of their portfolio bought up through years of emergency purchases at a steady pace of £100 billion (€132 billion), or whether to increase that amount. That would respond to a glut of maturing bonds and stop a drop in gilt disposals.