May 17, 2024 10:51 GMT
MNI UK Deep Dive: BOE Long-Term QT and FQ2 DMO Operations
UK
- We look at recent usage of the STR facility and what it means for policy going forward.
- We don't think that we are approaching the equilibrium level of reserves yet, but think that we are getting closer and hence usage of the STR facility will continue - but primarily as a "digestion" tool around large issuance events and redemptions.
- Longer-term, we expect the pace of active gilt QT sales to be at roughly half their current pace in the next year of operations (from October and announced at the September MPC meeting).
- We also set our our expectations for the DMO's issuance operations in the FQ2 period (July to September) where there are 19 auctions and 2 syndications scheduled.
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