Reported 9 days ago
A recent adjustment in how the Bank of England manages its bond portfolio has provided UK Chancellor Rachel Reeves with an additional £10 billion ($12.7 billion) in budgetary flexibility. This change, allowing the Treasury to transfer less cash to the Bank, comes amid rising costs and market pressures, potentially offering temporary relief until early 2029. The adjustments relate to a past agreement on covering losses from the Bank's extensive gilt holdings, and while they are seen as a short-term financial lifeline, the underlying portfolio costs remain unchanged.
Source: YAHOO