UK Treasury makes first payment to BoE to offset QE losses
Indemnity was “integral” to QE but “day of reckoning” had to come, economist says
The Bank of England has received its first payment from the UK Treasury to cover losses from the quantitative easing (QE) programme, which look set to mount in the years ahead.
The BoE confirmed it had received £828 million ($995 million) in October under the QE programme’s indemnity. The indemnification was agreed by former BoE governor Mervyn King with the Treasury when the central bank first used QE, in 2009.
The payment was highlighted in the latest quarterly report on the asset purchase
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