Bank of England QT decision could free up billions for Reeves ahead of Autumn Budget - reports

Up to £10bn windfall

clock • 2 min read

The Bank of England (BoE) will decide this month whether to speed up quantitative tightening in a move that would free up billions of pounds for the Treasury ahead of the Autumn Budget on 30 October.

At the upcoming meeting, the BoE's monetary policy committee (MPC) will set out its programme for selling gilts back to financial markets over the next 12 months to reduce its balance sheet, according to a report by The Times. Almost 70% of fund managers expect Labour policies to boost economic growth The UK's central bank is currently losing billions of pounds on its bond sales with the Treasury picking up the tab, which impacts how much spending power Chancellor Rachel Reeves will have, considering Labour's target to lower the debt ratio over a five-year rolling period. BoE estim...

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 Economics

US inflation falls to 2.4% in September

US inflation falls to 2.4% in September

Annual rate eases less than expected

Linus Uhlig
clock 10 October 2024 • 2 min read
Artemis' Stephen Snowden: What 30 years of fund management tells me about base rates

Artemis' Stephen Snowden: What 30 years of fund management tells me about base rates

'Economic growth will be hard to deliver'

Stephen Snowden
clock 10 October 2024 • 4 min read
Cardano's Ina Rinas: Diverging international recovery paths

Cardano's Ina Rinas: Diverging international recovery paths

Monetary policy 'turning towards easing'

Ina Rinas
clock 02 October 2024 • 4 min read
Trustpilot