Reversing QE

Well, yes, sorta:

Andrew Bailey, the Bank of England’s governor, has already created confusion by saying government bonds could be sold back to the market before interest rates are raised significantly, reversing the previous signal.

Not as big a change as you might think. For selling the QE bonds back into the market will raise interest rates……

3 thoughts on “Reversing QE”

  1. Are they the same interest rates? Would on be for short term money and the other for longer term?

  2. They’ve let inflation rise, now inflation expectations have gone up they are trying to talk *expectations* down again without actually having to do anything. Note all the comments are about how they *might* do something or, even weaker in my view, *could* do something.

  3. Tell the guv we’re sitting around just waiting to see these bonds sold back into the market. This could be a bloody spectacle.

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