The Bank of Englands chief economist, Huw Pill, anticipates a significant reduction in the central banks holdings of British government bonds, or gilts. Originally purchased for monetary policy purposes, the Bank accumulated eight hundred and seventy-five billion pounds worth of gilts between 2009 and 2021. Since 2022, the Bank has been selling off these holdings, with Pill indicating that this process will continue for an extended period. The Banks Monetary Policy Committee decided in September to cut gilt holdings by seventy billion pounds over the next year, reducing the total to four hundred and eighty-eight billion pounds. Pill previously advocated for a faster reduction pace, suggesting a hundred billion pounds a year. He also dismissed the idea of stopping gilt sales if market yields rise too high, emphasizing the Banks commitment to avoid selling gilts during disorderly market conditions. This shift signifies a reduction in the Banks presence in the government bond market and a change in its approach to monetary policy and economic management.

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