Bank of England Governor Andrew Bailey indicated that the balance sheet may need to shrink before interest rates rise again. His most prominent statements were as follows:
This action plan will give the Bank more strength in future crises.
High budgets can limit space for maneuver in future emergencies.
The BOW may adjust reserves first before raising interest rates.
The UK needs strong assessment of the weaknesses of the financial system.
The role of money market funds is one of the areas to be studied.
Bond purchases should not become a permanent policy.