Is The Bank Of England Broke - And Does It Matter?

August 31, 2023 00:10:46
Is The Bank Of England Broke - And Does It Matter?
Digital Finance Analytics (DFA) Blog
Is The Bank Of England Broke - And Does It Matter?

Aug 31 2023 | 00:10:46

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Show Notes

The Bank of England, like other Central Banks, is a weird entity, in that it can, if it wants create money. We saw that through the QE programmes, through which it acquired large portfolios of Government Bonds – known as guilts. The program ran from 2009 to 2022 and was designed to improve financing conditions for companies hit by the 2008 financial crisis. It saw the BOE accrue £895 billion worth of bond holdings while interest rates were historically low. However, the pace at which the central bank has had to tighten monetary policy in a bid to tame inflation […]

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