LONDON, Aug 2 (Reuters) – The Bank of England could this week shed light on how – and when – it might throw its decade-long stimulus programme into reverse, even as it continues for now to buy bonds as part of its 895-billion-pound quantitative easing programme.
The BoE has been working since February on how to start tightening policy. It is expected to be among the first of the world’s main central banks to begin the process of weaning its economy off stimulus support.
The BoE has said its review of how to coordinate or sequence a rise in interest rates and sales from its government bond stockpile will not signal an imminent change of policy. Instead, it wants to guide the public and markets about its future plans.
The BoE’s benchmark Bank Rate is at a record-low of 0.1% and its bond purchases, which began in 2009 during the global financial crisis, are approaching 40% of gross domestic product, double the share before the pandemic.
WHEN IS THE REVIEW…