What’s next for the Bank of England?

The Bank of England is under pressure as its quantitative easing (QE) programme and carry trade strategy lead to significant losses, estimated at around 4% of GDP. Unlike other central banks that opted for a more gradual unwinding, the BoE’s aggressive selling of gilts at the bottom of the market cycle has resulted in substantial financial setbacks. With inflation easing and interest rate cuts on the horizon, critics argue that it may be time to halt active quantitative tightening and hold assets to maturity instead, to minimise further losses. Read the full article to explore how the...