Bank of England likely to slow down QT, Investec economist says

Governor of the Bank of England, Andrew Bailey

The Bank of England’s Monetary Policy Committee (MPC) is likely to slow down its quantitative tightening (QT) programme over the next year, an Investec economist has said, as Britain’s central bank looks to quell concerns over rising gilt yields.

“We doubt that the MPC will maintain the same pace of balance sheet reduction next year as in the past year,” said Philip Shaw, the chief economist at Investec , adding that “the longer end of the gilt market has come under a degree of pressure.”

The Bank’s quantitative tightening programme, in which it unwinds earlier quantitative easing (QE) programmes through the sale of government debt, has been conducted at a rate of £100bn per year over the past two years.

As much as £87bn of QT over the