The Bank of England (BoE) has projected the Treasury will need to pay £100bn to cover expected losses from its bond-buying quantitative easing programme by 2033.
According to estimates published by the Bank on Friday (28 April), the BoE expects the government will need to pay it almost £30bn a year in 2023, 2024 and 2025 as part of an agreement on how to manage losses from the scheme. The BoE has warned that its £800bn portfolio of government bonds will suffer billions of pounds in losses due to rising interest rates eroding the value of the debt as it continues to reduce its holdings at a rate of £80m a year. This stands in stark contrast to the previous ten years, during which time the Bank helped the Treasury earn more than £100bn in profit...
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