BOE's Review of QT Will Likely be Overshadowed by Inflation Guidance
Dow Jones
Jul 29
0842 GMT - The Bank of England is expected to provide a review of its quantitative tightening program at its policy meeting on Thursday. Quantitative tightening is the process of reducing the central bank's bond holdings acquired during previous periods of quantitative easing. The BOE's review of quantitative tightening might not have significant influence on U.K. assets as investors' focus will likely be on inflation guidance and the rate decision vote split, Ebury's Matthew Ryan says in a note. A seven-to-two vote split in favor of keeping rates unchanged and guidance that plays down inflation risk could cause markets to trim back BOE rate-rise expectations, Ryan says.
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