The Bank of England is facing major losses on its bond purchases — and it’s set to get much worse
- The Bank of England’s losses on bonds bought to shore up the U.K. economy will be “materially higher than projected,” according to Deutsche Bank.
- In late July, the Bank of England estimated that it would require the U.K. Treasury to backstop £150 billion ($189 billion) of losses on its asset purchase facility.
- Sanjay Raja, senior economist at Deutsche Bank, said the cost to the Treasury of indemnifying the APF losses over the next two fiscal years will be around £23 billion higher than the Office for Budget Responsibility forecast in March.