Bank of England meeting discusses yields and energy prices

The Bank of England hosted a Market Participants Group meeting at the Bank of England from 5pm to 6.30pm, with discussion focused on international and domestic market conditions, including energy prices, bond yields, and gilt purchase unwinding.

• Participants discussed how geopolitical uncertainty and the future path of energy prices were affecting major advanced economies, and noted that duration supply, including from issuance by hyperscalers, was contributing to higher global bond yields.
• On the UK outlook, participants said the September MPC decision and the macro outlook were consistent with expectations that Bank Rate may need to be raised; they also welcomed the multi-year plan for unwinding gilt purchases for its greater transparency and predictability.