Banks say the Bank of England is likely to publish plans this week to review leverage rules that affect how financial firms hold government bonds, commonly gilts. The expectation is that changes could increase demand for gilts by improving the market capacity for banks to hold these assets, potentially lowering borrowing costs for the government. One estimate cited by banks suggests the effect could reduce public borrowing costs by more than £1 billion per year. However, the same coverage notes that some former regulators warn that using leverage rule changes to support bond market demand could also raise financial risks. The debate centers on the trade-off between encouraging greater participation in the government bond market and maintaining safeguards related to bank balance-sheet leverage and systemic stability. Overall, the reports describe a forthcoming BoE review of leverage rules, with market participants anticipating a potential boost to gilt demand, while critics caution that regulatory adjustments could have unintended consequences for risk management.