BOE Dares To Suggest Central Banks Can Sell Assets
The Bank of England said Thursday that it plans to stop reinvesting the proceeds from maturing assets once the policy rate is at 0.5% and assuming such a shift is deemed "appropriate given the economic circumstances."
That was notable. And so was the MPC's contention that policymakers would consider actively selling bonds when rates are back to 1%.
"Reflecting its judgement that there are advantages to reducing the stock of purchased assets initially by ceasing reinvestments, the MPC envisages
Well you know this experiment by boe could lead to a change in psychology about tantrums over taper. If one of the central banks are able to navigate to selling assets then the Fed engaging tapering should not be a big deal in people’s minds.
Not to say that that’s going to be a straight or easy line but who knows it might be.