- Bond investors are more focused on the Bank of England's quantitative-tightening program for the next year than its interest-rate decision at Thursday's policy meeting.
- Markets widely expect the BOE to keep rates on hold while analysts are split on the QT outcome.
- Any reduction in active bond sales from the BOE's balance sheet is potentially a tailwind for gilts.
Quotes
“Bond investors are more focused on the Bank of England's plan for its quantitative-tightening program for the next year than its interest-rate decision at Thursday's policy meeting.”
“Markets are interested in whether the BOE will scale back — or even halt — active bond sales from its balance sheet, while they widely expect rates to stay on hold.”
“Analysts are split on the QT outcome, with any reduction in active sales potentially a tailwind for gilts.”