BoE Asset Purchase Facility Update (2026): 46bln (exp. GBP 50bln, prev. GBP 70bln); BoE scraps long-end Gilt sales in plan to unwind QE by 2034

Votes: Votes 9-0 to unwind QT at an average annual pace of GBP 46bln through to 2034. Commentary: This Market Notice outlines the Bank Executive’s approach to implementing the Monetary Policy Committee’s (MPC) decision to unwind the gilts held for monetary policy purposes in the Asset Purchase Facility (APF). As part of this, Bank APF auctions will be paused while the Bank reviews a model of selling gilts to the Government. Auctions: In implementing the MPC’s decision, the Bank Executive has decided to retain in the APF GBP 222bln of gilts maturing before 2035 to maturity. In addition, GBP 120bln of the longest-dated gilts will remain in the APF and be held to maturity by the Bank for the purposes of indirectly backing current and future banknote issuance. Gilts would be sold at an annualised pace of GBP 20bln a year, in line with the MPC’s decision on its multi-year approach to APF unwind, with sales concluding around the time of the unwind of gilts held to maturity in 2034.