MUFG: BoE’s QT overhaul sets high bar for future changes

The shift from annual reviews to a pre-announced multi-year path is the real story: it trades flexibility for predictability, which matters for gilt holders trying to price supply. By raising the bar for future adjustments, the BoE effectively locks in its runoff trajectory, reducing the event risk that has surrounded each annual decision. The open question is whether that commitment holds if market conditions force a rethink.