Bank of England: £200bn QE raised inflation by up to 1.5%

The Bank of England has estimated its £200bn asset purchase program has raised inflation by as much as 1.5%.

In the latest quarterly bulletin released today, the Bank used a variety of methods to assess the impact of QE on inflation and growth in the UK. It concluded CPI inflation was likely between 0.75%-1.5% higher as a result of the asset purchase program, after it boosted asset prices and GDP growth. The full range of esimates of the impact of QE on inflation in the report were between 0.75% and 2.5% The Bank conceded the figures are an estimate and are "highly uncertain" but it nevertheless gives a rough indication of the impact of printing money. In the report it added economic g...