By David Milliken

LONDON (Reuters) -The Bank of England looks set this week to slow the 100 billion-pound-a-year pace at which it reduces its government bond holdings following increased volatility in bond markets, while keeping its main interest rate on hold.

Although the central bank views the pace of quantitative tightening as having little impact on the wider economy, it is closely watched by financial markets, where some blame it for pushing up British government borrowing costs.

The BoE is alone among major central banks in conducting outright sales of the government bonds it bought to boost the economy in the years after the 2008 global financial crisis, rather than just letting them mature.

Since 2022, the BoE has reduced its gilt holdings from 875 billion pounds ($1.2 trillion

See Full Page