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The Bank of England Monetary Policy Committee left policy on hold with only one member, Michael Saunders, voting to end gilt purchases earlier than planned. Overall the Committee voted 9-0 to keep rates at 0.1% and 7-1 to maintain asset purchases as planned.

It also published the results of its strategic review of policy tightening. In the review it announced it was lowering the policy rate threshold at which it could start quantitative tightening to 0.5% from 1.5%, with the Bank initially set to stop reinvesting the proceeds of maturing gilts and then, when Bank Rate reaches 1.0%, it will have the option of starting active gilt sales. The move on QT was in line with the thinking of former MPC member David Miles, speaking to MNI on Aug 3. (MNI INTERVIEW: End QE Early, Drop Guidance - Ex-BOE MPC Miles).

The announcement opens the door to early quantitative tightening, if the BOE so desires.