Bank of England officials may have been surprised when they noticed their asset purchases almost matched state borrowing in 2020. Between 1 January and 31 December, the Bank acquired £290bn of gilts. In comparison, net gilt issuance will likely be around £360bn for the same period. By the end of the financial year the Bank will have bought around £320bn-£330bn of gilts, with the budget deficit on track to land in the region of £350bn-£400bn.
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I saw this article floating around and I thought although we have had discussions about this sort of thing so far it does not seem to have had much of a negative effect.
I am, however, of the view that it is not sustainable. I do think we will see an increase in inflation when people are released from interimittent house arrest. Hence I think that holding cash itself has risks. That will also affect fixed interest. However, I don't think anyone has that much certainty as to what will happen (much live Covid really).