Treasury receives £35bn in ‘money for nothing’ from Bank of England

Harry Glass

The Treasury will receive a £35billion windfall from the Bank of England, it was announced today, in an unexpected boon to the Chancellor’s budgetary headache.

Governor Mervyn King has agreed that the Bank will hand over interest it has earned its holding of £375billion in Government debt purchased under the quantitative easing programme.

The extra cash will constitute a bonus reduction to the budget deficit, while also acting as a ‘small loosening of monetary conditions’ equivalent to more QE, according to the Bank.

Read more


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: