Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with the Bank of England regarding the reversal of its quantitative easing programme

Monetary policy is the responsibility of the independent Monetary Policy Committee of the Bank of England and this includes decisions on quantitative easing.

As set out in the letter exchange between the Chancellor and Governor on 3 February 2022, 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 Governor set out in his letter exchange with the Chancellor that, were asset sales judged to be appropriate, the Bank would liaise with the DMO in order to minimise interference with the DMO's own issuance programme, and would consider the views of market participants as to how best to minimise disruption in private asset markets.