BoE's Ramsden says his holds to Bank Rate since March have effectively delivered a tightening relative to where he thought we might otherwise have been

POLICY "I think the risks to the inflation outlook, whether external or domestically generated, have tilted more to the upside" Whilst the policy stance continues to provide restrictiveness, were upside pressures on the inflation outlook to continue to build, there could be a case for increasing Bank Rate. Bank Rate being the ‘active’ tool doesn’t always mean it has to change. Indeed, a decision to hold can be an active response to the risks to the inflation outlook. QT After another three years of QT progress and learnings, we are now ready to move to the next chapter. Of the GBP 488bln APF gilt stock, GBP 120bln of the longest-dated gilts will be retained to back current and future banknotes, leaving GBP 368bln to unwind for monetary-policy purposes. The remaining GBP 368bln will be unwound at an average GBP 46bln per year, including GBP 20bln of annual sales alongside maturities. The Bank is considering selling the remaining gilts to the Government rather than directly into the market, with the operational approach to be announced by April 2027.