What will happen when QE stops.

kennyboy66_2

tomterm8 wrote: »

The BOE pays a dividend to the treasury on its operating profits. That is in the legislation. What interests me is the legal implications of the above post - it implies that the various schemes are actually run as seperate legal entities to the BoE. In which case, are the schemes granted some form of limited liability?

No, the government has had to indemnify the BoE (asset purchase facility) against any losses that the scheme makes.

Almost by default, you would expect them to bu buying high and selling low, so there is bound to be some losses.

http://www.bankofengland.co.uk/monetarypolicy/qe/facility.htm