Economists Urge Bank of England to Halt Bond Sales to Cut Borrowing Costs
Quick Brief
Economists are calling on Chancellor John Healey to encourage the Bank of England to decelerate or freeze its government bond sales. The monetary policy committee is currently meeting to decide on interest rates as well as the future of the gilt-selling program initiated after the 2008 financial crisis. Critics argue that the ongoing bond disposals are costing the exchequer billions.
What Happened?
Economists have appealed to Chancellor John Healey to press the Bank of England to alter its current bond-selling strategy. The Bank's monetary policy committee is convening this week to determine both interest rate levels and whether to pause or slow the sale of government gilts acquired during post-2008 rescue operations.
Why It Matters
The current bond-selling program has reportedly cost the UK exchequer billions of pounds. Adjusting or freezing these sales could significantly reduce borrowing costs for the government.
Key Facts
- Economists are urging Chancellor John Healey to press the Bank of England for policy changes.
- The policy in question involves the sale of government bonds, or gilts, purchased following the 2008 banking crash.
- Critics state that the ongoing bond-selling program has cost the exchequer billions of pounds.
- The Bank's monetary policy committee is meeting this week to address both interest rates and the bond-selling schedule.
Compiled from 1 outlet
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