The Bank Of England’s Shrinking Options Amid The Bond Market Meltdown

Economic and Financial Analysis • Sep 29, 2022 at 12:45 PM EDT

With concerns rising over the scale of tax cuts, on top of an energy price guarantee from the UK government, the Bank looks to be in a deeply unenviable position.

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In a dramatic policy U-turn, the Bank of England has been carrying out gilt purchases as well as temporarily delaying quantitative tightening. With concerns rising over the scale of tax cuts, on top of an energy price guarantee from the UK government, the Bank looks to be in a deeply unenviable position. As inflation continues to rage across the UK, ING's James Smith looks at the Bank's shrinking options.

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