Bank of England investigating leak of QE extension decision
The Bank of England believes there was a leak of its decision to increase its bond-buying program by £150bn ($200bn) earlier this month.
Bank of England governor Andrew Bailey told Westminster’s Treasury Select Committee that the central bank was now investigating how the decision was leaked to The Sun.
“What we have to assume is that it was a leak and we therefore have to try to get to the bottom of it,” Bailey said.
The central bank extended its quantitative easing programme on 5 November to combat the economic effects of the new national lockdown.
The increase in bond-buying – which came as the BoE left interest rates untouched at 0.1 per cent – took the total quantitative easing package to £895bn.
Speaking to reporters shortly after the decision was formally announced, Bailey said: “Obviously, I don’t like seeing speculation about what we’re going to do appearing…and yes, we will look into it.”
The central bank also significantly downgraded its economics forecasts when expanding its bond buying programme, however these may be now adjusted.
Chief Bank of England economist Andy Haldane said today that the positive news on vaccine trials may mean 2020’s economic figures will be better than expected.
Earlier this month, the central bank said it expected the economy to shrink 11 per cent in 2020, down from the 9.5 per cent fall predicted in August.
The Bank predicted the economy would grow slower next year, expanding only 7.25 per cent, down from an earlier estimate of nine per cent growth.