BoE’s Bailey: I don't envisage balance sheet returning to where it was before financial crisis

Bank of England (BoE) Governor Andrew Bailey faces questions by the UK parliament's Treasury Select Committee (TSC) about the central bank's sales of bonds bought under its quantitative easing programme.

Key quotes

I don't envisage the balance sheet returning to where it was before financial crisis.

It's important to provide headroom in balance sheet.

QT is not an active policy tightening instrument.

more to come ....

Market reaction

GBP/USD is little changed by Bailey’s words, currently trading at 1.2437, down 0.40% on the day.