Following on from being the first major monetary authority to start unwinding quantitative easing (with £800 billion of gilts to go at), the Bank of England has pulled off another blinder. In the blink of an eye it has made £3.8 billion for the UK Treasury. How?
Well, after the fiscal statement disaster in late September 2022, it calmed panic in the bond market by buying £19.3 billion of long-term gilts. Last Wednesday it completed the sale back to the market.
Guess at what total price. Correct; £23.1 billion. Better bet than the £10 each way on that nag at Kempton Park would you say?
Jgs 14.01.23
