The Guardian Business · Экономика · 3 ч назад
The Bank of England is shaking up its bond sales – why does it matter?
What the plan to sell £146bn in gilts back to the Treasury means for the public finances Bank of England holds interest rates Burnham’s talk of ‘breathing space’ at odds with reality of future rate rises Mixed in with the Bank of England’s decision on Thursday to hold interest rates at 3.75% was a surprise announcement that it was shaking up its programme of quantitative tightening. So why is this apparently arcane c…
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The Bank is selling off hundreds of billions of pounds worth of government bonds it bought via the emergency policy of quantitative easing during the financial crises and Covid. Photograph: Bank of England/PA View image in fullscreen The Bank is selling off hundreds of billions of pounds worth of government bonds it bought via the emergency policy of quantitative easing during the financial crises and Covid. Photograph: Bank of England/PA Quantitative easing Explainer The Bank of England is shaking up its bond sales – why does it matter? What the plan to sell £146bn in gilts back to the Treasury means for the public finances
Prefer the Guardian on Google Mixed in with the Bank of England’s decision on Thursday to hold interest rates at 3.75% was a surprise announcement that it was shaking up its programme of quantitative tightening.
So why is this apparently arcane change to QT important, and what does it mean for the public finances?
It is the Bank of England’s controversial process of selling off hundreds of billions of pounds worth of government bonds that it bought via the emergency policy of quantitative easing (QE) during the financial crises of 2008 and Covid.
The Bank’s monetary policy committee (MPC) sees QT as the necessary unwinding of the massive balance sheet it built up. Its stockpile of bonds, known as gilts, has already been reduced from a peak of £895bn in February 2022, to £488bn.