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U.K. Says Treasury Will Fund BOE Losses on QE for First Time

The U.K. Treasury will make payments to the Bank of England for the first time to cover losses from the institution’s quantitative easing plan, according to the nation’s fiscal watchdog.

The forecasts, if realized, would mark a historic moment for the U.K. and may prove politically tricky for the Treasury. It could force the government to either earmark future taxpayer funds away from other projects to compensate the central bank or increase borrowing to cover the cost.