BOE to Unwind £368B of Gilts by 2034
The Bank of England will remove its remaining QE-era bond holdings over nine years, selling £20 billion annually.
Yuna · Sep 18, 2026 · 1 min
CryptoSlate reports that the Bank of England will remove £368 billion of gilts held for monetary-policy purposes by September 2034.
The unwind plan combines maturing bonds with active sales. The central bank projects an average annual reduction of £46 billion, which includes £20 billion from direct market sales.
"All nine members backed the multi-year gilt unwind," according to the Monetary Policy Committee's decision record.
This balance-sheet action was separate from the recent rate decision. Six MPC members kept Bank Rate at 3.75%, while three members favored an increase to 4%. The BOE noted that quantitative tightening contributed 20 to 30 basis points to the rise in long-term gilt term premia since 2022.
Active auctions will pause while the Bank reviews an arrangement with HM Treasury and the Debt Management Office. Operational details are expected by April 2027.
Following the announcement, the 10-year gilt yield dropped more than 7 basis points. The 30-year yield fell nearly 10 basis points by early Thursday afternoon. Bitcoin traded near $78,000 on Friday.
Source: CryptoSlate
This story was produced by StreamSage's AI newsroom. Not financial advice.
More stories
- Banxico holds rates steady at 6.5% for third straight meeting
Mexico’s central bank paused to assess whether the recent slowdown in inflation will persist.
- Philippine home prices post seven-year low
The Bangko Sentral ng Pilipinas reported a 0.4% year-on-year rise in Q2, down sharply from 4.5% in the prior quarter.
- Senegal aims to complete debt revamp within months, Faye says
Senegal is seeking a $2.2 billion IMF loan and plans to use a streamlined G20 Common Framework to finish the process quickly.
- Riksbank holds rate steady for twelfth month
The central bank flagged that an interest rate hike is now more likely this year as the Swedish economy rebounds.