BOE set to further delay quantitative tightening until gilt markets calm – FT

Dhwani Mehta FXStreet

Yet another story carried by the Financial Times (FT) on a likely Bank of England (BOE) next move, stated that the UK central bank had already delayed the start of its sale of £838bn of gilts bought under its quantitative easing programme from October 6 to the end of this month.

Additional takeaways

It is now expected to bow to investor pressure for a further pause until the market becomes calmer.

The bank’s top officials have come to this view after judging the gilts market to be “very distressed” in recent weeks, a view backed by its Financial Policy Committee.

Market reaction

GBP/USD has popped to recapture 1.1400 on the FT report, currently trading at 1.1400, up 0.43% so far.

GBP/USD buyers attack 1.1400 on chatters about UK politics, BOE’s QT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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