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UK government faces £150bn bill to cover Bank of England’s QE losses

Estimated cost to taxpayers has increased sharply as interest rates have risen
The QE programme was designed so that the central bank is indemnified by the Treasury against losses

The Bank of England has estimated it will require the Treasury to transfer a total of £150bn by 2033 to cover expected losses on the central bank’s quantitative easing programme, up from a previous calculation of £100bn.

The transfers represent both the continuing cash flow losses on the QE scheme — under which the BoE bought large volumes of gilts — as well as gains or losses made by the central bank when bonds mature or it sells the assets.

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