QE will have long-term fiscal benefits, Bailey tells Treasury
BoE analysis addresses criticism that taxpayers paying for unconventional monetary policy
The governor of the Bank of England has told the UK’s chief finance minister that its quantitative easing (QE) programme will not cost the country’s taxpayers in the long term.
In a letter to chancellor Rachel Reeves on November 11, Andrew Bailey said the fiscal benefits of QE were likely to “significantly, or fully, offset the net lifetime transfers” from the Treasury to the central bank.
“A significant proportion of the fiscal savings is still to be realised, given the long maturity at which
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