Bank of England Seeks Stability Amid Fragile Gilt Market

Janus Henderson’s UK Institutional team, led by Jenna Barnard, analyzes the BoE’s September decision to manage policy without further destabilizing long-dated gilts.

• With inflation still elevated, the BoE left rates at 4% and emphasized a cautious approach to quantitative tightening.

• The central bank will reduce gilt holdings by £70bn, while skewing issuance away from long maturities to reflect weak demand.

• Gilt performance remains pressured versus U.S. Treasuries, underscoring the UK’s unique inflation challenges.

How should investors navigate a gilt market facing both structural inflation risks and fragile demand? Explore the full commentary for deeper insights.