Bank of England further delays quantitative tightening - reports

Bid to maintain calm markets

The Bank of England is likely to further delay enacting quantitative tightening in order to maintain greater stability across gilt markets following the volatility sparked by the Mini Budget.

According to the FT, top officials at the BoE are expected to extend the delay to unwinding QE to at least the end of October owing to the "very distressed" gilts market. Gilt yields have steadied following the Bank's intervention and yesterday's (17 October) shredding of the Mini Budget by new chancellor Jeremy Hunt, but they still remain elevated. The 30-year gilt closed at 4.37% yesterday and remains well above the 3.75% that predated the fiscal event. The future of UK gilts Last week, BoE governor Andrew Bailey confirmed at the IMF annual meeting that the Monetary Policy Commi...