BoE's Ramsden: Not expecting to unwind gilt purchases any time in near future

Bank of England (BoE) Deputy Governor Dave Ramsden said on Wednesday that they are not expecting to unwind gilt purchases any time in the near future, as reported by Reuters.

Key quotes

"We will need strong evidence of sustained progress to using up spare capacity, inflation returning to target, before tightening policy."

"Financial market pricing of future interest rates has fallen very low, this means we need to think of the relation between bank rate and asset purchase stock."

"Government bonds and corporate bonds are likely to remain the focus of the BoE's asset purchases."

Market reaction

The British pound remains on the back foot after these comments and the GBP/USD pair was last seen losing 0.42% on the day at 1.3842.