BOE’s Mann Warns of Tension Between Rate Cuts and Gilt Sales

Bank of England rate-setter Catherine Mann said there’s a tension between cuts to interest rates and efforts to unwind quantitative easing, warning her colleagues that bond sales risk stunting the economy by holding up long-dated yields.

Mann said Monday that the effects from the BOE’s run-off of its balance sheet of bonds cannot be easily offset by rate cuts as they influence short and long-dated bond yields differently.