2012-11-12

Easy Money




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The Bank of England has said it will give the Treasury the interest it earns on certain government debts it holds.

The Bank owns £375bn in gilts due to its quantitative easing (QE) policy of buying up debt to boost the economy.

The transfer will cut the government's borrowing needs and the net debt it reports in its financial accounts.

The Bank has been purchasing government debt from the market with newly created money as part of its QE policy since March 2009.

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