Bank of England Gilts Plan to Eclipse Rates Vote

WATCH: “We have terminal rate of three and a half, so we expect two more cuts,” Bank of America UK Economist Sonali Punhani says.Source: Bloomberg

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By Tom Rees

September 17, 2025 at 11:01 PM UTC

The Bank of England is set to rein in its quantitative tightening program amid concerns that its gilt sales are worsening volatility in the bond market.

Economists and investors expect the Monetary Policy Committee to slow the speed at which the BOE is reducing its holdings of government bonds to £70 billion ($96 billion) a year from £100 billion. Officials may also limit the amount of long-dated gilts it sells.