BoE moving closer to 'restrictive' fiscal territory with cancelled sale of long-dated bonds

Amid market turbulence

Eve Maddock-Jones
clock • 2 min read

The Bank of England has cancelled the previously planned sale of its long-dated bonds, pushing it to the brink of “restrictive” fiscal policy, economists have warned.

The central bank was set to auction off some of its long maturity bonds on 14 April but in a notice on Thursday (10 April) it said it was switching this to short maturity bonds "in light of recent market volatility". US tariffs threaten UK growth and stymie Reeves and BoE's plans Equity and fixed income markets have had one of the most turbulent weeks on record, triggered by US President Donald Trump's tariff war launched last week. The back and forth from the US on hiking, pausing or increasing various levies has sent equities into a spiral, and UK gilt yields have crept up to 200...

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 to 2.6% in March amid warnings of further price rises
UK

UK inflation falls to 2.6% in March amid warnings of further price rises

CPIH at 3.4% in March

Sorin Dojan
clock 16 April 2025 • 2 min read
UK retail sales defy expectations but outlook is taxing
UK

UK retail sales defy expectations but outlook is taxing

YoY retail sales growth below three-month average

Beth Brearley
clock 15 April 2025 • 2 min read
Treasury launches support package for businesses hit by tariffs
UK

Treasury launches support package for businesses hit by tariffs

£20bn in UKEF support

Sorin Dojan
clock 14 April 2025 • 2 min read
Trustpilot