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

The Bank of England is weighing changes to bank leverage rules that could boost UK government bond demand and reduce UK borrowing costs by more than one billion pounds annually. Major UK lenders are pushing for exemptions on gilts from leverage ratio requirements. However, former regulators have cautioned that such exemptions could weaken financial stability safeguards, prompting the central bank to explore alternative regulatory adjustments.