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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.

Rishi Sunak, U.K. chancellor of the exchequer.

Photographer: Hollie Adams/Bloomberg

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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.