"The Bank currently pays interest on the vast bank reserves created during the emergency policy of quantitative easing (QE). It is also in the process of running down the stock of government bonds it bought through QE, in a programme known as quantitative tightening (QT). Critics, including Reform, have pointed out that these bonds are now being sold at a loss, which must be borne by the Treasury."
"The Reform UK leader, Nigel Farage, has stepped up calls for the Bank of England to halt bond sales and cut the interest it pays to UK banks, after a meeting with its governor, Andrew Bailey. Farage met Bailey on Thursday morning at the Bank's Threadneedle Street headquarters with the Reform MP Richard Tice, after the governor requested their first formal meeting."
Nigel Farage and Reform MP Richard Tice met Bank of England governor Andrew Bailey and demanded halting bond sales and lowering interest paid on bank reserves. The Bank pays interest on reserves created by quantitative easing and is reducing its government bond holdings through quantitative tightening. Reform and other critics say sold bonds are being sold at a loss, which falls to the Treasury, and that QT has modestly increased gilt yields. The Bank’s monetary policy committee planned around £21bn of gilt sales next year while about £49bn are expiring, slowing the pace of QT amid volatile global bond markets.
Read at www.theguardian.com
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