MNI BRIEF:Won't Do Asset Sales In Fragile Markets-BOE's Bailey

Bank of England Governor Andrew Bailey said Friday that the Bank would not yet actively reduce its balance sheet, by selling gilts, it it posed a risk to financial stability. "We are not going to do this in a period of very fragile markets," Bailey said at an IMF event. Earlier Friday, MNI reported that it was far from a foregone conclusion that the central bank would begin a more activist round of QT just yet.

He said that it was important, though, that the Bank does reduce its balance sheet rather than allow it to ratchet it up with every fresh crisis. The BOE Monetary Policy Committee's guidance is that it will consider selling gilts when Bank Rate hits 1% but Bailey stressed that sales were contingent on financial stability.