BOE Axes Long-End Gilt Sales as QE Unwinding Accelerates

The Bank of England has revised its plan to unwind quantitative easing by 2034. The move is aimed at providing relief to Britain's bond market, which had been under pressure due to the central bank's previous plans. As a result, UK government borrowing costs have fallen.

Under the new schedule, the BOE will pause all bond sales from its £488 billion portfolio until April 2034. The most significant change is that the central bank will stop selling long-dated bonds altogether, which had been a key component of its quantitative tightening program.

The revised plan was announced on September 17, 2026, and it has already led to a decrease in UK government borrowing costs. This move is seen as an attempt by the BOE to unwind its £488 billion gilt portfolio, which had accumulated during the previous decade's quantitative easing efforts.