The Guardian view on the Bank of England’s £120bn bill: power without accountability | Editorial

AI desk brief

The Guardian says the Bank of England’s QT programme could cost the Treasury £120bn and argues the indemnity-backed framework is distorting fiscal policy, with the Treasury having already paid £17bn last year. It notes the Bank’s APF is losing money via gilt sales at lower market prices, higher base-rate financing costs, and losses on maturing bonds bought above par.

The piece says the BoE and Treasury are reportedly discussing QT changes to reduce pressure on rate rises, which would amount to quieter coordination between fiscal and monetary authorities. For metals, the key takeaway is that any softer QT path or reduced upward pressure on UK yields would be modestly supportive via lower real-rate pressure, though the article is primarily a policy critique rather than an explicit market note.