Sir Mervyn King, the Bank of England's Governor, told the Chancellor that £37bn cash the Treasury claimed from the QE programme will not help the UK's finances.
As George Osborne readies for gloomy debt forecasts next week, Sir Mervyn King said it was "very clear" that any headline boost to the public finances from the Treasury's move would not help the "underlying" position - and signalled that it should not be presented to the public as doing so, the Daily Telegraph reports. "What I did make very clear to the Treasury was that I thought it had no impact at all on the long-run fiscal position and there was no benefit to the taxpayer of making this change," he told MPs. It was for the Treasury, rather than the Bank, to "face up to" concerns t...
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