The Bank of England expects to halve the size of its quantitative-easing portfolio to around £400 billion ($500 billion) over the next few years as commercial banks trim their demand for the safest of central bank assets, according to an internal BOE analysis. The research found that UK lenders will need to hold in the long-term between £325 billion and £480 billion of reserves, a form of central bank deposit. Reserves ballooned in the financial crisis and pandemic as they were created as part of QE so the BOE could buy assets. While the paper doesn’t represent official BOE policy, it’s the most specific figure yet ... (full story)