Government debt costs to soar if QE withdrawn - BoE

Charles Bean said quantitative easing has led to a full percentage point drop in the Government's cost of borrowing - sparking fears of an increase in its financing costs when the programme is withdrawn, reports The Telegraph. According to Bean, Bank research suggests gilt yields have fallen 1% as a result of the programme, under which the Government bought £200bn of assets to stimulate the economy. Citing figures from the Institute for Fiscal Studies, The Telegraph says if the 1% drop is reversed, by 2014-15 more than 10p in every pound paid by UK taxpayers could be used to pay the G...