Economic news

Bank of England Projects 125 bln Pound Loss for QE Programme

LONDON, May 5 (Reuters) - The Bank of England estimated on ​Tuesday that its quantitative ‌easing programme would rack up a net financial loss of ​around 125 billion ​pounds ($169 billion), which will need ⁠to be funded by ​the British government.

Under the ​central bank's QE programme, which first started in 2009 as a ​means to stimulate ​the economy after the global financial ‌crisis, ⁠Britain's finance ministry agreed to cover any losses and during the 2010s it ​booked ​profits.

The ⁠BoE's net lifetime QE loss estimate was ​based on the ​market ⁠rate curve, and was higher than the BoE's 115 ⁠billion ​pounds projected ​in February.

($1 = 0.7386 pounds)

Reporting by Suban ​Abdulla, editing by Andy Bruce

Source: Reuters


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