Global Market: Bank of England weighs leverage rule changes to boost gilt demand

The Bank of England is reviewing leverage requirements to potentially boost demand for UK government bonds (gilts). Major UK lenders including Barclays have proposed exempting unencumbered gilts from leverage ratio calculations, which could unlock up to £150 billion in additional gilt purchases. The central bank is expected to provide an update in its half-yearly Financial Stability Report, though former regulators have warned against diluting prudential safeguards.