From Morningstar:

MPs on the Treasury Select Committee have warned that the Bank of England’s decision to start selling government debt in 2022 was a “leap in the dark” and lacked attention to value for taxpayers’ money. The Bank was the first major central bank to start quantitative tightening, which involves removing money from the economy.

The Treasury Committee called on the Bank of England to ensure that the pace of quantitative tightening is at least partly based on value for money for the taxpayer, in addition to setting borrowing costs. The Committee stated that decisions were being taken regarding vast amounts of taxpayers’ money without any regard to value for money.

Treasury Committee Chair Harriett Baldwin emphasized the need to develop forecasting and modeling tools to understand the risks and benefits of quantitative tightening. She called for the Bank and Treasury to explore whether customary value for money considerations can be factored in decisions about the pace and level of quantitative tightening implementation.

The Bank of England has announced that it will consider the committee’s findings before responding. The Bank started buying the same government debt it sold off in recent years during the 2008 financial crisis to add new money to the UK’s economy. They have encouraged active debate about their monetary policy decisions and implementation.

The Bank of England has welcomed the Committee’s report and announced that it will consider the findings carefully before responding. They encourage active debate about their monetary policy decisions and implementation.



Read more: Taxpayers Need VFM From QT, TSC Warns (and ASAP)