BOE officials say gilt sales could be suspended; sales schedule possible in August
The Bank of England will set out its plans for gilt sales in August and could suspend sales if market conditions turn adverse, policymakers told the Treasury Select Committee on Monday.
The Monetary Policy Committee has said it will consider gilt sales now Bank Rate is at 1% and Governor Andrew Bailey told the TSC "We are not going to do it in disruptive market conditions ... We could suspend it if necessary."
Deputy Governor Dave Ramsden stressed that the aim was to keep the policy rate as the primary tool and that "quantitative tightening will be happening in the background." The Bank is currently consulting with markets on the scale and frequency of gilt sales.