Source: Adam Smith Institute
by Tim Worstall
“It’s the original purchases that are costing the taxpayer money …. the loss was baked in when the Bank of England bought all those bonds back when. Buying gilts with 1/2% and the like coupons just was/is going to lead to a loss. A loss that can be taken in one of two ways but a loss which is going to be taken in one of those two ways. … The loss comes from having done Quantitative Easing, not from the clean up that is Quantitative Tightening. Sorry, there is no free money.” (06/10/26)
https://www.adamsmith.org/blog/bank-of-england-bond-sales-dont-cost-taxpayers-anything