BoE QE Will Result in £300bn Increase in Spending

The Bank of England’s 435 billion-pound government bond-buying programme is likely to bring about a 300 billion-pound increase in overall spending in Britain, equivalent to three times annual public health spending, the BoE’s chief economist said on Wednesday.

Andy Haldane also said the quantitative easing programme would lead to the central bank holding around a third of the stock of British government bonds by 2018.

The BoE announced an expansion of its QE programme in August, along with a cut in interest rates, as it sought to offset the hit to the economy from the country’s decision to leave the European Union.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.