BoE holds rates and slows QT
Maturity profile shortened as Bailey aims to avoid disrupting gilt markets
The Bank of England has held its policy rate at 4% and slowed the pace of quantitative tightening (QT) from £100 billion to £70 billion per year.
The bank’s monetary policy committee (MPC) voted 7–2 to hold the policy rate. The decision was in line with market expectations and less contentious than the MPC’s previous decision, when it voted 5–4 to cut rates by 25 basis points.
Year-on-year headline inflation was 3.8% in August, the same as the previous month. The MPC said prices were expected to
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