Belfast Telegraph

Bank's strategy 'boosting the wealthiest'

By Holly Williams

The wealthiest 5% of Britons have seen their fortunes increased further by the Bank of England's economy-boosting efforts while many pension funds have suffered, the Bank has revealed.

Its quantitative easing (QE) programme has increased total household wealth by 16%, or £600bn, after increasing the value of assets.

But it is the richest households, holding around 40% of these assets, that have benefited the most, the Bank said.

Its report into the impact of its £375bn QE programme, which was launched in the wake of the financial crisis, also found that pension funds with hefty shortfalls will have seen their deficits increased further.

However, the Bank said QE has helped the UK avoid an even worse economic battering.

"Without the Bank's asset purchases, most people in the United Kingdom would have been worse off," the Bank said.

"Economic growth would have been lower. Unemployment would have been higher. Many more companies would have gone out of business.

"This would have had a significant detrimental impact on savers and pensioners along with every other group in our society."

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.

Popular