0903 GMT - The Bank of England could announce plans in September to slow the process of unwinding its gilt holdings, known as quantitative tightening, from 70 billion pounds to 50 billion pounds, J.P. Morgan's Allan Monks says in a note. At this week's policy meeting, the BOE increased its estimate of the impact of the QT program on the gilt market to a cumulative impact of 20 to 30 basis points to date, versus last year's estimate of 15 to 25 basis points. "This may be a hint that the monetary policy committee will be more inclined to slow the QT pace as redemptions step down in the year ahead," Monks says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments