LONDON: The Bank of England (BoE) is facing pressure to hold onto more than a quarter of its bond holdings, potentially for decades, after recent market turmoil highlighted the fragility of demand for long-dated UK government debt.
Forecasters including Oxford Economics and HSBC Holdings Plc expect the central bank to limit sales of its remaining £163bil (US$219bil) of gilts with a term of over 20 years, or even stop the disposals altogether, in a shift to the way it is reducing its crisis-era balance sheet.
