Central Banks
BOE Focuses on Inflation Fight With Bond Sales in Two Weeks
- Long-dated debt at center of turmoil to be initially excluded
- Follows record selloff which sparked central bank intervention
The Bank of England in the City of London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The Bank of England will start its delayed bond sales early next month, refocusing on the fight against record inflation after averting the threat of a market meltdown.
The announcement of so-called quantitative tightening is a statement of intent from the central bank, which had been on the defensive for weeks after fallout from a government plan for massive unfunded tax cuts forced it to start buying gilts again in order to avoid a fire sale by pension funds. The sales will initially exclude the long-dated debt at the heart of recent market turmoil triggered by the government’s ill-fated fiscal plans.