There have been some concerns that as well as there being little scope to generate stimulus through interest rate cuts, the Bank of England is now reaching its limits on Quantitative Easing (QE). But the Bank seems open to loosening its own QE rules. And over the next few years, there is likely to be no shortage of gilt issuance. That’s why we think the Bank can be safe in the knowledge that it has more QE headroom to support the economy should it be necessary.
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