Not so much the kindness of strangers ... just the generosity of old friends ...
Not so much the kindness of strangers, just the generosity of old friends. The Treasury will have to sell £234 billion of gilts this year. The Bank will have to step in as the buyer of last resort.
Nothing Cute about QT. The Old Lady will have to abandon plans to sell off £80 billion of government debt. The Bank held 33% of the £2.4 trillion of gilts in issue at the start of the year, according to the Debt Management Office.
Government debt is set to rise by almost £500 billion over the next three years. Government spending plans by "inky blots and rotten bonds sustained. Johnny Foreigner's holdings have slipped below 30%.
The Old Lady of Threadneedle street will have to step up. This is no time for The Bank of England to shirk the task and shrink the balance sheet.
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