Archive · 26 Jun 2025

BoE Eyes Bond Market Sensitivity, QT Scrutiny

BoE Eyes Bond Market Sensitivity, QT Scrutiny

The Bank of England, like other central banks, is looking closely at how its actions affect the prices of long-term bonds.

They're worried about whether there's enough demand for these bonds.

The BoE is reviewing a process called 'quantitative tightening' where it reduces the amount of bonds it holds.

Even though the BoE has lowered interest rates, the cost of borrowing for long periods has not gone down.

Some experts think the BoE's actions may be making it harder to borrow money, even though the central bank is trying to make it easier.

Sources