Treasury faces £150bn bill over BoE QE losses

Increased with rising rates

The Bank of England has estimated it will make a loss of £150bn over the next decade as a result of its quantitative easing programme, adding extra costs to the Treasury.

This was an increase on the previous £100bn projected cost, as higher interest rates since then have escalated the total amount. The trend of increasing losses contrasted to the prior decade when the central bank produced significant gains, largely thanks to the extended period of quantitative easing and low interest rates it rolled out following the financial crisis. Inflation comes in under expectations at 7.9% but UK remains 'drastic outlier' The BoE is now attempting to unwind the QE measures, but it has coincided at a time when interest rates and inflation are high and therefo...