BoE posts £5.5bn loss on QE book

clock

The Bank of England has made a £5.5bn full-year loss on the assets bought under its quantitative easing (QE) programme to prop up the battered UK economy.

It bought £200bn of gilts, corporate bonds and commercial paper between February 2009 and February 2010 to inject further monetary stimulus after slashing rates to 0.5%, the Telegraph reports. However, its first annual report revealed the portfolio value has shrunk by £5.5bn. Gilts accounted for the entire fall, with the £198.3bn book valued at £192.8bn on 28 February. After the £3.8bn of interest paid on the bonds, the nominal loss to the taxpayer is £1.75bn. But since February, gilt values have improved due to the Chancellor's Budget actions and analysts say the fund is now likel...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read
Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read