BoE claims QE boost to equities offsets annuity rate fall

The claim comes after insurers said QE has driven annuity rates to an all-time low, worsening pensioner poverty. Miles, an external member of the Bank's monetary policy committee (MPC), admitted QE drove down gilt yields, contributing to the fall in annuity rates since 2008. However, he said QE increased the value of other assets which pension funds hold more of. This boosted the value of pension funds and compensates for the fall in annuity rates, Miles said. In a speech this week to the Manchester Business Conference, Miles noted annuity rates have fallen by 100 basis points (...