Central Banks
UK Sours on £895 Billion Stimulus Tool After Side Effects Hit Home
- Growing criticism of cost and impact of quantitative easing
- Rising asset sales have increased scrutiny of UK central bank
This article is for subscribers only.
Quantitative easing, the policy tool deployed across the Group of Seven to stimulate economies through the financial crisis and pandemic, is rapidly falling out of favor in Britain.
From politicians and the finance minister to economists and a former Bank of England governor, many are cooling rapidly on the merits of the tool as its cost to taxpayers and side effects become apparent. The result is likely to make it more difficult for the UK central bank to pull the QE lever in the same way again if the economy sours.