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.
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