Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Bank of England unwound quantitative easing, selling gilts simultaneously with DMO.
Conclusion
In November 2022, the Bank of England started to actively unwind its QE programme, a process also known as quantitative tightening, meaning for the first time it was selling gilts at the same time as the DMO. In the 12 months from September 2022, the Bank of England reduced the number of UK government gilts held as part of the QE programme by £80 billion.20 In September 2023, the Bank of England announced a further £100 billion reduction in the 12 months to September 2024. This will take place alongside the DMO needing to sell £232.3 billion of gilts as part of its 2023–24 remit.21
Government Response
A response document is linked to this report, dated 3 May 2024. Response attribution to this conclusion has not been verified. Read the response document ↗