Andrew Hauser, executive director, markets, at the Bank of England, outlined on Wednesday how his institution would slim down its balance sheet when the time came to do so. He said that this would likely involve selling assets rather than simply letting them run off, but explained that the bank would work in collaboration with the debt management office on this.
The timing of the speech was interesting given that markets have been pricing in increasing dovishness at central banks in the past few months, including that the European Central Bank might introduce another round of quantitative easing.
“Market expectations don’t point to QT starting any time soon,”
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