The Bank of England’s intervention in September to restart gilt purchases to support markets and pension funds troubled by rising rates and unfunded fiscal expansion is a warning that fiscal considerations are becoming a more potent force in monetary decisions. It could also be an early test case for other quantitative easing countries grappling with bloated central bank balance sheets, high debt and rising policy rates.
Neil Williams, chief economist and Taylor Pearce, economist at OMFIF, discuss what the forces driving government funding costs will be, whether there are other measures available and how they might suit the UK.
Global Public Pensions 2022, OMFIF’s survey of pension funds, is launching on Tuesday 6 December.