BoE's Bailey sets out reserves plans as BoE unwinds bond purchases
LONDON - Bank of England Governor Andrew Bailey set out on Tuesday an outline for how the central bank intends to ensure stable money markets as it sells more of the 875 billion pounds of government bonds it bought between 2009 and 2021.
The size of the BoE's balance sheet is inflated because of the cash created under its quantitative easing operations, but the central bank has long said it does not expect its balance sheet to return all the way down to its size before the 2008 financial crisis. "We will have headroom should we need to use the balance sheet again, and we can maintain monetary control through the use of Bank Rate," Bailey said in the speech at the London School of Economics.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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