Comments by BOE board member Gertjan Vlieghe
- QE unwind need not have material impact on yield curve or economy
- That is should it be well communicated and be done gradually
- Should expect yield curves to be flat again on average
- QE does affect yield curve but primarily by affect expectations of future monetary policy
In June, the BOE said that they won't consider reducing the QE stock until the bank rate hits 1.50%. So, it'll be quite a while before we actually get there and the central bank will have ample amounts of time to prepare the market for the unwinding.
This is still something very trivial at this point as things like a no deal Brexit outcome can throw all of the BOE's plans out of the window.
