Latest news with #quantitativeTightening
Bloomberg
4 days ago
- Business
- Bloomberg
BOE's Mann Says Officials Need to Consider Impact of Bond Sales
Bank of England rate-setter Catherine Mann said that officials need to consider the impact quantitative tightening may be having on long-dated bond yields and the economy when deciding interest-rate policy. Mann said Monday that effects from the BOE's run-off of its balance sheet of bonds cannot be easily offset by rate cuts as they affect short and long-dated bond yields differently.
Reuters
4 days ago
- Business
- Reuters
Bank of England's Mann says impact of QT cannot be offset fully
LONDON, June 2 (Reuters) - The Bank of England needs to pay closer attention to the impact of its quantitative tightening programme on monetary and financial conditions now that it is cutting interest rates, BoE policymaker Catherine Mann said on Monday. The British central bank makes a decision on the pace at which it reverses its past quantitative tightening once a year, with a next decision due in September. "Now that the MPC is reducing restrictiveness, I believe that we need to consider the differing effects of our policies on different parts of the yield curve and their effects on monetary policy transmission as a more salient issue," Mann said in the text of remarks released by the central bank. Mann is due to deliver the remarks at a conference hosted by the U.S. Federal Reserve later on Monday. Last month, Mann and BoE chief economist Huw Pill voted to keep interest rates on hold at 4.5% rather follow the majority decision to cut rates to 4.25%, due to their concerns about persistently high inflation.
Bloomberg
30-05-2025
- Business
- Bloomberg
Looming BOE Decision Casts £4 Billion Shadow Over UK's Budget
A decision that the Bank of England has to make in the next few months is posing a £4.3 billion ($5.8 billion) threat to Chancellor of the Exchequer Rachel Reeves' spending plans. By September, the BOE will announce the pace at which it will offload the gilts it owns next year under so-called quantitative tightening. The central bank has been shrinking the portfolio by £100 billion ($135 billion) a year but pressure is mounting to scale back the run-off amid strains in the UK government bond market.
Bloomberg
19-05-2025
- Business
- Bloomberg
BOJ to Mull Pace of Bond-Buying Cutbacks After Market Meetings
The Bank of Japan will sound out market participants this week to gauge their views on how aggressively it should proceed with quantitative tightening as yields surge nearly a year after it began scaling back its huge bond purchases. The BOJ will hold two gatherings on Tuesday with representatives from banks and securities firms to hear their views on the current and future pace of the central bank's pullback from the bond market. A third meeting with buy-side groups will be convened Wednesday. The collated opinions will inform the bank when it reviews its debt purchases at the next policy board meeting on June 16-17.
