Bank of England's Bailey: QT not to blame for banking turmoil

Treasury Select Committee

Cristian Angeloni
clock • 3 min read

The Bank of England's governor Andrew Bailey said the central bank's decision to pivot to quantitative tightening did not have “any connection” with the events in the banking system in recent months.

He reiterated that no stress was felt in the UK banking sector as a result of the collapse of SVB and Signature Bank, or the rescue sale of Credit Suisse to UBS. At a Treasury Select Committee hearing today (18 May), BoE representatives defended the decision to initiate QT last year. BoE governor Bailey signals further rate hikes in face of inflation uncertainty Bailey said the move was "important" to allow the central bank's balance sheet "to adjust so it has headroom to do whatever [it] might need to do in the future". The governor added that the BoE's balance sheet needed to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

UK inflation falls less than expected over March to 3.2%
UK

UK inflation falls less than expected over March to 3.2%

‘Signs of deeper persistence’

clock 17 April 2024 • 2 min read
UK unemployment rate ticks up to 4.2% in cooling labour market
UK

UK unemployment rate ticks up to 4.2% in cooling labour market

Wage growth higher than expected

Valeria Martinez
clock 16 April 2024 • 2 min read
Peel Hunt: FTSE SmallCap index could cease to exist by 2028
UK

Peel Hunt: FTSE SmallCap index could cease to exist by 2028

UK M&A report

Valeria Martinez
clock 03 April 2024 • 2 min read
Trustpilot