BoE Faces Pressure to Halt Bond Sales Amid £120bn Loss Fears

The Bank of England is facing pressure to slow down its bond-selling programme, known as quantitative tightening (QT), which has cost the UK government billions of pounds.

Economists have urged Chancellor John Healey to press the Bank's monetary policy committee (MPC) to freeze or slow the sale of government bonds, or gilts, bought under QT. The process was introduced after the 2008 banking crash and has resulted in losses for the exchequer.

The bond sales have suppressed demand, pushed up interest rates, and added to the UK's borrowing costs, which are already at multi-decade highs due to the turmoil on financial markets caused by the Middle East conflict. The yield on the 10-year gilt has passed 5.4%, its highest level since July 2007.

Bank officials have signalled that bond sales will continue, but at a slower rate than expected earlier this year. Critics argue that the Bank is ignoring the escalating bill it's creating for Healey, who faces his first budget next month.