Economics

A £3 Billion Loss at the Bank of England Will Soon Be Rishi Sunak’s Problem

Central bank will stop bond reinvestments from next month
Indemnity means government must cover any losses on gilts

Rishi Sunak, U.K. chancellor of the exchequer.
Photographer: Hollie Adams/Bloomberg

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By David Goodman and Philip Aldrick

February 10, 2022 at 5:00 AM UTC

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The Bank of England’s quantitative easing program is on course to book a 3 billion-pound ($4.1 billion) loss in the coming weeks as the central bank’s massive bond holdings start their journey from government cash cow to a drain on the public finances.