The Bank of England paused gilt sales for six months and stopped selling long-dated government bonds as it outlined a plan to reduce most of its remaining £488 billion gilt holdings by 2034. The decision was announced alongside an expected hold in interest rates, days after 30-year British borrowing costs reached their highest level since 1998 during a global bond selloff. The move renewed criticism that quantitative tightening (reducing central-bank bond holdings) crystallizes losses ultimately borne by taxpayers. Governor Andrew Bailey said the Bank and its Monetary Policy Committee would retain a substantial portion of the gilts held for monetary policy while unwinding the remainder over eight years. Under the plan, £120 billion of gilts maturing in 2049 or later will remain permanently to back banknotes, £222 billion due by 2034 will be held to maturity, and £146 billion maturing between 2035 and 2049 will be sold. Sales will average £20 billion a year, while the combined reduction through sales and maturities will average £46 billion annually. The Monetary Policy Committee approved the plan unanimously, 9-0. Gilt prices rose sharply after the announcement, with 30-year yields heading for their biggest one-day decline since April and reaching a three-week low. The Bank will pause gilt auctions until April while consulting on transferring sales at market prices to the government’s Debt Management Office, which could avoid poor auction prices for small residual holdings.