Story perspectives

Bank of England Considers Cutting Gilt Sales Amid Debt Crisis

9/18/2025

39 9

Summary

Story summary

The Bank of England (BoE) is contemplating lowering its annual gilt sales target to £60 billion due to rising government debt servicing costs.
Ongoing bond sales are exacerbating fiscal challenges, with the UK government facing a £20 billion shortfall.
Analysts believe the BoE's quantitative tightening (QT) is increasing borrowing costs, with 30-year gilt yields at their highest since the 1990s.
The BoE's approach to active sales contrasts with other central banks, raising questions about its necessity.
There are concerns that continued gilt sales could lead to a future crisis requiring intervention.

1 of 1

Story summary

The Bank of England (BoE) is contemplating lowering its annual gilt sales target to £60 billion due to rising government debt servicing costs.
Ongoing bond sales are exacerbating fiscal challenges, with the UK government facing a £20 billion shortfall.
Analysts believe the BoE's quantitative tightening (QT) is increasing borrowing costs, with 30-year gilt yields at their highest since the 1990s.
The BoE's approach to active sales contrasts with other central banks, raising questions about its necessity.
There are concerns that continued gilt sales could lead to a future crisis requiring intervention.