🧵 1. Bank of England faces mounting losses on bond purchases, projected to be "materially higher until the middle of the decade," says Deutsche Bank. #finance
🧵 1. Bank of England faces mounting losses on bond purchases, projected to be "materially higher until the middle of the decade," says Deutsche Bank. #finance
🧵 2. The central bank may need UK Treasury's support for £150 billion ($189 billion) in losses on its asset purchase facility.
🧵 3. Bank of England's program aimed to support the UK economy post-financial crisis by accumulating £895 billion worth of bonds.
🧵 4. However, the central bank began selling these bonds last year, and rising interest rates have led to sharp valuation losses.
🧵 5. Treasury has already transferred £30 billion to cover losses, which are expected to exceed government forecasts due to higher interest rates and falling gilt prices.
🧵 Read more at: https://www.cnbc.com/2023/08/30/bank-of-england-bond-losses-to-cost-government-20b-more-than-expected.html