The Bank of England has trousered £3.8bn in profits from ditching bonds it hoovered up to stem financial chaos caused by Liz Truss’s calamitous mini-budget, the central bank told City A.M.
The Bank announced today it has ditched all the £19.3bn of gilts purchased last autumn to stabilise the UK debt market.
Governor Andrew Bailey and co will not pocket the profits themselves. Instead, the earnings will flow to the treasury.
Truss’s £45bn of unfunded tax cuts last September sent markets wobbling at the prospect of being asked to absorb a huge upsurge in government borrowing.
Just weeks after the announcements, the pound sank to its lowest level ever against the US dollar and UK debt costs hit their highest level in two decades.Bank of England makes £3.8bn profit from Liz Truss mini budget bond sales — CityAM
Categories: Economic History