The Bank of England’s Asset Purchase Facility: fiscal impacts and proposals to expand the UK Government’s fiscal space
Claeys, I., Barmes, D. & Suresh Kumar, R. S.
(2024).
The Bank of England’s Asset Purchase Facility: fiscal impacts and proposals to expand the UK Government’s fiscal space.
London School of Economics and Political Science. Centre for Economic Transition Expertise.
The Bank of England created the Asset Purchase Facility (APF) after the global financial crisis of 2007–08 to implement its quantitative easing (QE) programme. However, the Bank’s recent tightening of monetary policy has caused the APF to incur substantial losses, at great cost to the public finances. This policy brief examines the policy options available to minimise this fiscal burden and create savings that could be directed elsewhere – including towards green investment projects that are vital to creating jobs and facilitating the UK’s net zero transition.
