- The Bank of England scrapped plans to sell long-dated gilts as part of a major overhaul of its quantitative tightening program.
- The BoE will unwind its £488 billion ($650 billion) QE portfolio by 2034.
- Under proposals that have yet to be finalized, the bank will keep £120 billion of gilts maturing in 2049 or later and match them against future banknote issuance.
- Another £222 billion maturing by 2035 will run off, and the remaining £146 billion maturing between 2035 and 2049 will be sold at £20 billion a year, with the option of selling directly to the government through the Debt Management Office.
Quotes
“The Bank of England has scrapped plans to sell long-dated gilts as part of a major overhaul of its quantitative tightening program that will see the £488 billion ($650 billion) portfolio unwound by 2034.”
“the bank will keep £120 billion of gilts that mature in 2049 or later and match them against future banknote issuance.”