Quantitative easing (QE) is not only helping to reduce gilt yields for the Government, but it is also lowering the amount that the Government is paying out in debt interest and therefore helping to reduce the size of its deficit. This effect is not yet taken account of in the published figures on the deficit, but the Government has a sizeable windfall in store.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services