TL;DR CNBC

The Bank of England is facing major losses on its bond purchases — and it's set to get much worse

Publishing timestamp: 2023-08-30 04:54:27

Summary

Deutsche Bank predicts that the Bank of England's losses on bonds purchased to support the UK economy will be higher than projected. The cost to the UK Treasury of indemnifying these losses over the next two fiscal years is estimated to be around £23 billion higher than forecasted. The Bank of England's losses are due to rising interest rates and falling gilt prices. This could impact the government's ability to offer public spending or tax-cutting pledges.

Sentiment: NEGATIVE

Tickers: .BBKA,  0H7D-GB, 

Keywords: prices,  business news,  central banking,  deutsche bank ag,  economic events, 

Source: https://www.cnbc.com/2023/08/30/bank-of-england-bond-losses-to-cost-government-20b-more-than-expected.html