The Bank of England has estimated 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.
Click here to change your cookie preferences