Schroders' Isaac: QE programme will top £600bn

The Bank of England will continue with its quantitative easing programme until it owns all of the gilt market not controlled by life companies, according to Schroders' Gareth Isaac.

Speaking at Investment Week's Senate Summer Investment Conference in Monte Carlo last month, Isaac (pictured) said the Bank would not raise interest rates "for a number of years" and suggested it would be forced to expand the remit of its stimulus programme in future. The Bank today announced a further £50bn of quantitative easing, having already bought £325bn worth of the £1trn gilt market since launching the first round of QE in March 2009. "At £325bn, the Bank already owns around 35% of the gilt market, and they will continue with QE until they own all the market not accounted for ...