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2025-09-18 19:35:18
[The Bank of England's "dovish" tone, the reduction of QT shocked the market] ⑴ The Bank of England voted 7 to 2 on Thursday to keep interest rates unchanged, and announced that the annual scale of quantitative tightening (QT) would be reduced from 100 billion pounds to 70 billion pounds to mitigate the impact on the bond market. ⑵ The bank adjusted the structure of government bond sales and reduced the proportion of long-term bond sales. This move caused the yield on UK two-year government bonds to fall 2.5 basis points to 3.94% on the same day, and the yield on 30-year bonds to fall 1 basis point to 5.42%. ⑶ The British pound remained stable at 1.3624 against the US dollar; the euro weakened slightly against the pound to 0.8679 pounds; the London FTSE index rose 0.3% on the same day. ⑷ James Rossiter, head of global macro strategy at TD Securities, said that the central bank's statement was conservative and in line with market expectations, and predicted that the Bank of England may cut interest rates again by 25 basis points in November.
