Government funnels almost £45bn to Bank of England to cover losses

BoE annual report

The Treasury sent payments totalling £44.5bn to the Bank of England between March 2023 and February 2024 to cover losses at central bank.

According to the BoE's annual report published yesterday (30 July), the near £45bn of funds funnelled from the Treasury to the BoE was part of an indemnity agreement, whereby any gains or losses accrued by the bank's asset purchasing facility (APF) – which carried out its quantitative easing (QE) programme – are covered by the Treasury rather than the BoE.  Since the APF's inception in 2012, capital has been transferred to the Treasury rather than from it; until July 2022 cash flows totalling £123.8bn had only ever been in one direction, from the APF into the Treasury.   BoE hold 'mad...