Bank of England expected to slow bond-buying programme and hold interest rates today – business live

AI desk brief

The Bank of England is expected to keep Bank Rate unchanged at 3.75% today, but the key market focus is whether it slows quantitative tightening from £70bn to around £50bn annually and possibly halts sales of long-dated gilts. A less aggressive QT path would be supportive for duration and, by extension, metals via lower yield pressure, even as persistent inflation and some MPC dissent risk keep the policy backdrop mixed.

The article notes a weak UK labor market, negative real wage growth and soft manufacturing/construction data, which argue against an immediate hike, though inflation remains above target. The decision could move sterling and gilt yields, with implications for precious metals through the real-yields channel.