Is confidence returning?
You might think £750m is a lot of money: relative to £838 billion it isn’t. Still, it’s the start of quantitative tightening and achieved easily by the Bank of England at 2.15pm today (1st Nov 2022 ) – oversubscribed by 3 times.
According to research by Bank of America, 57% of all UK gilts were acquired by the UK’s central bank as issued since 2009. So, financing the UK budget deficit is in reverse. Is confidence returning?