Explainer: What on Earth has the Bank of England done with its bond sale programme?

cityam16:39

Bailey said the QT overhaul 'provided clarity' The Bank of England chose to hold interest rates at 3.75 per cent on Thursday. But its unexpected overhaul of quantitative tightening could be far more ...

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But its unexpected overhaul of quantitative tightening could be far more ...</p>\n\n<a href=\"https://www.cityam.com/explainer-what-on-earth-has-the-bank-of-england-done-with-its-bond-sale-programme/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Explainer: What on Earth has the Bank of England done with its bond sale programme?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nExplainer: What on Earth has the Bank of England done with its bond sale programme?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-09-18 16:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/explainer-what-on-earth-has-the-bank-of-england-done-with-its-bond-sale-programme/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bailey said the QT overhaul 'provided clarity' The Bank of England chose to hold interest rates at 3.75 per cent on Thursday. But its unexpected overhaul of quantitative tightening could be far more ...</p>\n\n<a href=\"https://www.cityam.com/explainer-what-on-earth-has-the-bank-of-england-done-with-its-bond-sale-programme/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TACN","symbol_name":"T. Rowe Price Active Core International Equity ETF","start_time":0,"source_url":"https://www.cityam.com/explainer-what-on-earth-has-the-bank-of-england-done-with-its-bond-sale-programme/","article_id":"2668682941","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2025/12/BOE-bailey-front-CMYK.jpg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/explainer-what-on-earth-has-the-bank-of-england-done-with-its-bond-sale-programme/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2668682941","pubTimestamp":1789720779,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Bailey said the QT overhaul 'provided clarity' The Bank of England chose to hold interest rates at 3.75 per cent on Thursday. But its unexpected overhaul of quantitative tightening could be far more consequential, says Ali Lyon.On days when the Bank of England’s Monetary Policy Committee decides the future of interest rates, that choice – and the thinking that goes into it – understandably hogs the limelight.After all, ‘Bank Rate’ – as the monetary authority’s central interest rate is referred to – is hugely important. It acts as a kind of metronome for the UK economy, setting the tempo for our mortgages, for banks’ loans to businesses and – of course – the government’s ballooning debt pile.But the approach became increasingly mired in controversy. By actively selling gilts onto the market, Threadneedle Street set itself apart from the likes of the European Central Bank and Federal Reserve, both of which opted for a ‘passive’ approach to QT. With its unorthodox ‘active’ stance, the Ban","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TACN":"T. Rowe Price Active Core International Equity ETF","BBEU":"JPMorgan BetaBuilders Europe ETF","BK4582":"ESG ETF-MSCI","FLGB":"Franklin FTSE United Kingdom ETF","IDEV":"iShares Core MSCI International Developed Markets ETF","BK4585":"ETF&股票定投概念","BNDW":"Vanguard Total World Bond ETF","ISVL":"iShares International Developed Small Cap Value Factor ETF","BK4588":"碎股"},"translate_title":"解说员：英国央行的债券销售计划到底做了什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISVL":1.5,"TACN":1.5,"BBEU":1.5,"IDEV":1.5,"BNDW":1.5,"FLGB":1.5},"content_text":"Bailey said the QT overhaul 'provided clarity' The Bank of England chose to hold interest rates at 3.75 per cent on Thursday. But its unexpected overhaul of quantitative tightening could be far more consequential, says Ali Lyon.On days when the Bank of England’s Monetary Policy Committee decides the future of interest rates, that choice – and the thinking that goes into it – understandably hogs the limelight.After all, ‘Bank Rate’ – as the monetary authority’s central interest rate is referred to – is hugely important. It acts as a kind of metronome for the UK economy, setting the tempo for our mortgages, for banks’ loans to businesses and – of course – the government’s ballooning debt pile.\n\nBut this week, the most important development from the influential committee’s gathering was not related to that rate decision at all. Alongside their move to keep Bank Rate at 3.75 per cent – a decision widely expected but not without its critics – Threadneedle Street also unveiled a radical and surprising change to a process known as quantitative tightening.Mervyn King was governor of the Bank of England when it first introduced QEA potted history of the Bank’s bond salesThe programme is a dry and technical one. But the numbers involved are eye-watering, and decisions relating to it have enormous ramifications for both the public purse and the economy at large.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nIn broad terms, quantitative tightening – QT – describes the Bank of England’s attempts to reduce the vast stockpile of bonds that have been sitting on its balance sheet for over 15 years.\n\nIn the aftermath of the 2008 financial crisis, central banks the world over hoovered up their respective government bonds in a desperate attempt to revive their flagging economies and minimise borrowing costs for both the public and private sectors.The operation was called quantitative easing and was – in the Bank of England’s case – a veritable feeding frenzy. By the time the central bank concluded its shopping spree in 2021, it had amassed a gilt portfolio totalling some £895bn, the majority of which was taken on during Covid.Since 2022, however, officials have been unwinding that process in a move officials say will give the Bank the firepower to “go again” should financial conditions rapidly deteriorate as they did in 2008. Until now, it has been carried out via a combination of letting shorter-dated bonds mature naturally and a pre-determined cadence of sales onto the public bond markets.\n\nBut the approach became increasingly mired in controversy. By actively selling gilts onto the market, Threadneedle Street set itself apart from the likes of the European Central Bank and Federal Reserve, both of which opted for a ‘passive’ approach to QT. With its unorthodox ‘active’ stance, the Bank was adding to the supply of gilts on the market – thereby pushing down their price, and pushing up on their yield.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.50.0","shortVersion":"4.50.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2668682941","isCrawlerRequest":true}