BOE Likely to Continue Quantitative Tightening at Slower Pace

Dow Jones
08/28

0913 GMT - The Bank of England is likely to continue unwinding its bond holdings through gilt sales and gilt redemptions via its quantitative tightening program over the next 12-month period starting in October, RBC Capital Markets strategists say in a note. The BOE's findings show that the QT program has had minimal impact on gilt yields, implying that the program is likely to continue, the strategists say. RBC expects the BOE to slow the pace of QT to 50 billion pounds from October, from 70 billion pounds currently. The BOE could shift to more short-dated gilt sales and reduce long-dated gilt sales due to lower demand for the long-maturity bonds, they say.

 

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