Overview

• The MPC kept Bank Rate at 4% with inflation at 3.8%, as external members Swati Dhingra and Alan Taylor voted for a cut to 3.75%.
• To achieve a £70bn balance‑sheet runoff, the Bank is expected to increase active gilt sales to about £21bn from roughly £13bn last year.
• Governor Andrew Bailey said the slower pace is intended to keep reducing the balance sheet while limiting pressure on gilt market conditions.
• The OBR estimates cumulative losses tied to QE/QT near £134bn, and the IPPR argues pausing active sales could save the Treasury more than £10bn a year.
• UK long‑dated gilt yields recently hit a 27‑year high during a global bond sell‑off, with analysts divided on the role of QT versus political shocks in driving the moves.