BoE's Ramsden (Q&A) says while the estimate of the influence of QT on term premia has been revised up, the overall impact remains very small. Bank Rate remains the main tool for policy.

Remarks of this kind follow a familiar pattern at central banks running down balance sheets alongside a rate-cutting or holding cycle: officials periodically defend the separation principle, that the policy rate steers demand while asset sales proceed in the background at a pre-announced pace. The context here is a standing debate over how much gilt term premia are attributable to QT rather than to issuance and global duration supply, and whether a revised-up estimate still leaves the effect small enough to be immaterial. Comments framed as 'very small impact' function primarily as pre-emption of the case for slowing or halting runoff, which is where such discussions have historically ended up when curve or funding stress has emerged. The distinction that matters for rates desks is between active sales and passive runoff: in past episodes the market has reacted far more to changes in pace or composition than to official estimates of the stock effect. The follow-ons worth noting are the next decision on the annual gilt sales target and any shift in other MPC members' language on balance sheet, since single-official Q&A remarks tend to fade unless they mark a committee-level shift. Reaffirming Bank Rate as the main tool is standard boilerplate and carries little signal on its own.