Financial transaction that makes sense

[DimPrawn]

KUATB

[AtW]

Bank of England hands QE income to Treasury

The Bank of England has said it will hand over to the Treasury the interest it earns on government debt it holds due to its quantitative easing policy.

Last March the Bank held £24bn from payments on the £375bn gilts it owns, a total set to reach £35bn by next March.

The transfer will cut the government's borrowing needs and the net debt it reports in its financial accounts.

The Bank has been buying up government debt from the market with newly printed money in order to boost the economy.

The interest income ultimately belongs to the government under the terms of an indemnity provided to the Bank, but until now, the cash has been sitting unused in a dedicated account - the Asset Purchase Facility (APF) - at Threadneedle Street.

BBC News - Bank of England hands QE income to Treasury



Makes sense doesn't it - Govt does not even want to pay puny interest on gilts they "sell" to BoE

FFS, isn't BoE supposed to be run like normal company? Police should arrest all board members to probe deeply alleged breach of fiduciary duty