ICAEW Insights In Focus: How will quantitative tightening affect the UK economy?

ICAEW Insights

In this Insights In Focus episode, we explore the Bank of England’s recent policy switch from quantitative easing to quantitative tightening.

The Bank of England has been supporting the UK economy by buying government bonds since 2009. The policy has been a stabilising force through successive economic shocks: the global financial crisis, the euro crisis, the Brexit vote and, most recently, the COVID-19 pandemic.

Now, the Bank of England is on a mission to reduce inflation, raising interest rates and beginning to sell the £895bn of government bonds that sit on its balance sheet. But how much should be sold and how soon?

Host Philippa Lamb discusses the role that QE has played within the economy, and the process of quantitative tightening, with Reuben Wales, ICAEW Head of Financial Services; Martin Wheatcroft, external adviser on public finances to ICAEW; and Michael Saunders, economist and member of the Monetary Policy Committee from 2016 until very recently.

Links
ICAEW inflation hub
https://www.icaew.com/technical/economy/inflation

ICAEW cost of doing business hub
https://www.icaew.com/technical/economy/cost-of-doing-business

ICAEW economic insight
https://www.icaew.com/technical/economy/economic-insight

Host
Philippa Lamb

Guests
Michael Saunders, Monetary Policy Committee member, 2016-2022
Reuben Wales, ICAEW Head of Financial Services
Martin Wheatcroft, external adviser on public finances to ICAEW

Producer
Natalie Chisholm

Episode first published: 30 November 2022

Podcast recorded: 23 November 2022