By David Milliken

LONDON (Reuters) -The Bank of England looks set to slow on Thursday 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 BoE views the pace of quantitative tightening as having little impact on the economy, the annual decision on its bond sales is closely watched by financial markets, where some blame it for pushing up British government borrowing costs.

A Reuters poll showed economists expect the Monetary Policy Committee to slow the pace to a median 67.5 billion pounds ($92.2 billion) – a bigger drop than the fall to 72 billion pounds in the Bank of England’s own poll in August.

The analysts were unanimous that the BoE would keep r

See Full Page