Bank of England Holds Rates Steady, Details Gilt Reduction Strategy

The Bank of England's Monetary Policy Committee voted 6-3 to keep the Bank Rate at 3.75%. Concurrently, the Bank announced a new strategy to reduce its Asset Purchase Facility, planning to retain £120 billion of gilts for banknote issuance and gradually sell the remaining £368 billion by late 2034. The Bank also forecasts CPI inflation to rise to 3.75% in Q4 2026 and over 4% in Q1 2027.