MPC, QE & gilt supply
About this course
How the MPC actually decides, QE/QT mechanics, DMO gilt-supply operations, and how all three cascade into PWLB rates. Plus an operational calendar and timing rules for treasury decisions.
What you'll learn
- The MPC
- Bank Rate & the OIS curve
- Quantitative Easing
- Quantitative Tightening
- Gilt supply (DMO)
- The macro framework
Part of these pathways
Related courses
- Interest rates: foundations
- Recent global economic events
- Inflation: RPI, CPI & index-linked gilts
- Money markets primer
- Day-count conventions
- Yield curves explained
Common questions
What is APF?
Asset Purchase Facility. The wholly-owned BoE subsidiary that holds the gilts purchased under QE. Indemnified by HM Treasury — gains and losses ultimately accrue to the public finances.
What is Bank Rate?
The official interest rate set by the MPC. The rate at which the BoE remunerates reserves held by commercial banks. Anchors the front end of the yield curve.
What is DMO?
Debt Management Office. HM Treasury's executive agency. Manages the government's cash position and issues gilts to fund borrowing. Operates the PWLB lending facility.
What is DMO remit?
The annual financing remit set by the Chancellor at the Budget. Specifies the volume of gilts to be issued in the coming financial year, broken down by tenor and type (conventional / index-linked / ultra-long).
What is Fed?
The US Federal Reserve. Sets the Federal Funds rate, which influences global rates including UK gilts via cross-currency arbitrage and risk sentiment. UK rate decisions are not made in isolation.
What is Forward guidance?
Communication from a central bank about the likely future path of policy rates. Can be explicit (numerical), conditional ('rates will stay low until X holds'), or state-contingent ('rates depend on the evolution of Y').