In an article for Scotland on Sunday, Chief Investment Officer Haig Bathgate, discusses the Bank of England opting for a further £75 billion of quantitative easing (QE) which will be used to purchase UK gilts.


He notes that "QE is implemented by creating money out of thin air electronically and buying UK gilts with that money. One of the major holders of gilts is the UK banking system, so the thinking goes that as the Treasury buys bonds, demand outstrips supply and holders of gilts eventually sell to the Treasury."

To read the full article 'Latest dose of QE likely to come with nasty side-effects', which appears on scotlandonsunday.co.uk, please click here.

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