Minutes of the Market Participants Group meeting – 24 September 2026

The Governor opened the meeting by outlining the purpose and legal framework governing the session, noting the Monetary Policy Committee (MPC) would adopt a listening stance. Participants then reviewed macroeconomic developments in major advanced economies outside the UK, focusing on how geopolitical uncertainty and energy price volatility were affecting central banks’ policy decisions. The discussion highlighted challenges in calibrating policy amid shifting energy costs and global growth dynamics, with particular attention to the impact on bond markets.

Participants assessed the drivers behind rising global bond yields, attributing part of the repricing to the resilience of major economies in absorbing energy shocks. Technical factors, including positioning adjustments and duration supply from hyperscalers, were cited as contributing to market movements. The debate also explored whether recent yield increases reflected changes in real interest rates or breakeven inflation expectations.

The group examined the September MPC decision, with participants agreeing that the macroeconomic outlook and MPC communications aligned with market expectations for a potential Bank Rate increase. Market pricing reflected these expectations, including embedded risk premia in the yield curve. The relationship between energy prices and market rates was discussed in the context of ongoing global uncertainty.

Market participants welcomed the Bank’s multi-year plan to unwind its stock of gilts purchased for monetary policy purposes, viewing it as a positive step toward greater transparency and predictability in the policy path. The plan’s structure and timing were seen as supportive of market stability and policy clarity.