Interest rates so low - don't bother saving!

sabretoothtigger

stop any further QE (if it hadn't already been stopped) and put interest rates up by 0.5% or 1%

QE buys at market premium. If they start raising rates at all then the near zero returns will quickly turn negative. QE is going to register a loss, either tax payers handle that in future or they write it off and sterling is worth less. Not 375bn less but maybe 10 or 20% is easily lost so far?

They cant reverse QE, its another bill waiting to be paid.



So in 3 years these gilts have gained 20% apparently, the best chance BOE has now is to sell the bonds at that price.
At least the ones they got in March 2009, instead they are buying at these prices and HMT just stole the 'profits' too.
Its obvious the whole thing is as well thought out as a chocolate teapot