Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with the Bank of England about reversing quantitative easing; and what assessment have they made of its effects on public finances.

Monetary policy is the responsibility of the independent Monetary Policy Committee of the Bank of England and this includes decisions on quantitative easing. The Government does not comment on the conduct or effectiveness of monetary policy.

As set out in the letter exchange between the Chancellor and Governor on 5 November 2020, the Government indemnifies the Bank of England’s Asset Purchase Facility, the vehicle that delivers quantitative easing. As part of this, there are oversight arrangements in place, including regular risk oversight meetings between Treasury and Bank senior officials which monitor the scheme’s implementation and risks to the Exchequer.

The Office of Budget Responsibility’s Economic and Fiscal Outlook, published on 27 October 2021, sets out the fiscal impacts of the Asset Purchase Facility including the effects of a potential unwind of quantitative easing over the forecast period.