Bank of England Expects £125 Billion Loss from Quantitative Easing Programme
Bank of England's Quantitative Easing Losses and Government Funding
Estimated Financial Losses from QE
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.
Background of the QE Programme
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.
Updated Loss Projections
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)
