BOE’s Bailey Wants to Shrink Balance Sheet Before Rate Hikes

The transcript discusses Andrew Bailey's perspective on the timing of exiting extraordinary policy, suggesting that more stimulus might be added before winding down. It highlights the bank's strategy for future crises, including the use of QE purchases and interest rates. The importance of central bank independence is emphasized, even when policies benefit the government, such as during the pandemic when QE helped keep borrowing costs low.

What are the potential future actions mentioned regarding the balance sheet?

What does the speaker imply about interest rates in the near future?