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Bank of England Sets Multi-Year Path to Sell £146 Billion in Gilts Maturing 2035–2049

economy-finance · 2026-03-31

On September 16, 2026, the Monetary Policy Committee (MPC) wrapped up a meeting where they laid out a long-term plan to phase out the UK government's bond purchases related to monetary policy. They aim to sell off £20 billion annually alongside the maturity of gilts. The Bank Executive intends to keep £222 billion of gilts that will mature before 2035 in the Asset Purchase Facility (APF) until they reach maturity, while also retaining £120 billion of long-term gilts to aid in future banknote issuance, including part of the 1.75% gilt maturing in 2049. For the £146 billion expected from gilts maturing between 2035 and 2049, they’re working with HM Treasury and the Debt Management Office to create a purchasing model. A review of this strategy will occur before April 2027, and details will follow then, with APF auctions halted in the meantime.

Key facts

  • The MPC met ending 16 September 2026 and set a multi-year path to reduce UK government bond purchases held for monetary policy purposes to zero
  • Annual sales of £20 billion will run alongside maturing gilts
  • £222 billion of gilts maturing before 2035 will be retained in the APF to maturity
  • £120 billion of the longest-dated gilts will be held to maturity to indirectly back banknote issuance
  • Gilts maturing between 2035 and 2049 amount to £146 billion in purchase proceeds terms
  • Sales would be conducted at market prices at an annualised pace of £20 billion a year, concluding around the unwind of gilts held to maturity in 2034
  • The Bank will review progress before April 2027, with operational details announced by April 2027 and Bank APF auctions pausing in the meantime
  • Of the 1.75% 2049 gilt, £7.8 billion is retained to back banknotes and £15.0 billion will be sold

Entities

Institutions

  • Bank of England
  • Monetary Policy Committee
  • Bank Executive
  • HM Treasury
  • Debt Management Office
  • Financial Policy Committee
  • Asset Purchase Facility
  • Monetary Policy Committee (MPC)
  • Asset Purchase Facility (APF)
  • UK Debt Management Office
  • Prudential Regulation Authority
  • The Bank of London
  • Oplyse Holdings Limited

Locations

  • United Kingdom

Sources

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