Daily Archives: February 7, 2012

Claire Jones

The Bank of England looks set to announce more money printing on Thursday, with £50bn the amount most analysts expect.

If the Monetary Policy Committee does go ahead and announce more QE, there is little doubt that it will buy nothing but gilts. However, it is less certain what sort of gilts the Bank would buy.

Over the past four months the Bank has bought around £5.1bn a week in gilts. The purchases have been spread out across the curve, with the Bank buying £1.7bn of gilts with maturities of between three and 10 years, £1.7bn with maturities of between 10 and 25 years, and the same amount with maturities of more than 25 years.

However, Sam Hill, UK fixed income strategist at RBC Capital Markets, believes that could change with the next round of asset purchases. Read more