Overview

• The BoE is expected to cut annual quantitative tightening from £100 billion to about £75 billion and lower Bank Rate by 25 basis points on August 7.
• UK Treasury has transferred nearly £90 billion to cover QT losses, including £53 billion in interest to banks and £37 billion from active gilt sales.
• Deutsche Bank’s Sanjay Raja estimates that shifting sales to short- and medium-dated gilts could save the Treasury an additional £5 billion.
• Reform Party deputy leader Richard Tice has urged a full halt to active gilt sales and former MPC member Michael Saunders proposes stopping long-dated sales.
• Policymakers will decide the 2025–26 QT envelope at the September meeting, setting next year’s gilt‐sale pace.