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Quantitative easing reduced government borrowing costs as Covid-19 crisis hit markets
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Scooped by Graham Watson |
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This article has caused some consternation this morning: was Britain close to going bust in March. According to the Governor of the Bank of England, this was a possibility before the Bank stepped in with Quantitative Easing.
Indeed, remarkable though it might seem the Bank has actually sold bonds with a negative yield, meaning that investors are effectively paying to lend money to the government. However, the question is did the intervention provide markets with the confidence to continue to invest in the UK?