The Bank of England (BoE) has decided to slow its quantitative tightening (QT) program, cutting annual gilt sales from £100 billion to £70 billion. Chief Economist Huw Pill warned this may only offer temporary relief, while Governor Andrew Bailey emphasized the need to maintain financial market stability ahead of the government budget.
Investors are advised to monitor the UK gilt market closely as the BoE navigates inflation and economic growth challenges.
Key Figures: BoE Quantitative Tightening & Economic Outlook
| Metric | Previous | New / Forecast | Notes |
|---|---|---|---|
| Annual Gilt Sales | £100B | £70B | QT slowdown announced |
| Inflation Peak | N/A | 4% (Sept 2025) | Expected to decline to 2% by Q2 2027 |
| Economic Growth Q3 2025 | 0.3% | 0.4% | Revised upward forecast |
| Market Reaction | Moderate volatility | Stabilizing | Short-term relief expected |
