BoE Slows Quantitative Tightening Pace to £70 Billion

The Bank of England (BoE) has slowed its quantitative tightening (QT) pace to better align with market expectations and economic stability. The BoE will now sell £70 billion in gilts annually, down from a previous target of £100 billion. This adjustment is effective starting September 2025, with an acceptable range of £65-75 billion.

The decision comes as the UK government has been issuing more gilts and increasing debt servicing costs. The BoE's QT program has pushed gilt yields up by approximately 0.4%. Deputy Governor Ramsden described the market impact as 'very limited' compared to the effects of quantitative easing (QE).

For Bitcoin, which has traded like a macro asset correlated with liquidity cycles, a slower QT pace means fewer gilts being dumped into the market and less upward pressure on yields. This is seen as a marginal tailwind for the cryptocurrency.