BoE Governor Bailey: Will only do QT active sales in a stable market and cease if conditions change

Bank of England Governor Andrew Bailey on Friday remarked that the bank will only conduct active sales of assets on its balance sheet in stable market conditions and the bank will cease such operations if conditions change, reported Reuters. The BoE cannot have a constant ratchet upwards of its balance sheet, Bailey noted. 

Earlier in the week, Bailey had warned that ”we are walking a very tight line between tackling inflation, and the output effects of real-income shock” and stated that the UK’s inflation target is going through the most severe test since it was created.