TREE NEWS update: The Bank of England said upside risks to UK inflation are greater than in July, warning that indirect effects on CPI may be delayed rather than diminished. It also said £222 billion of gilts maturing by 2035 will be held to maturity.
Bank of England: UK inflation upside risks greater than in July
The BoE's admission that upside risks have grown since July, and its warning that indirect CPI effects may simply arrive later rather than fade, complicates the case for near-term easing and keeps the path of UK rates genuinely open. The decision to run £222 billion of maturing gilts to maturity is a quieter but meaningful signal on balance-sheet management, shaping how the market reads the pace of any future unwind. For crypto and RWA markets, the relevant thread is UK duration and sterling liquidity, which feed into the broader rate backdrop that digital-asset risk appetite tracks. Whether the inflation pass-through the BoE flags actually shows up in the data is the open question.
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