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MPs call for more evidence on effects of QE

London UK Thames Parliament 480

The Treasury select committee is calling for written evidence on the effects of quantitative easing after the Bank of England published a controversial report on its impact last month.

The Bank launched a robust defence of its QE programme in its paper, the Distributional Effects of Asset Purchases, claiming most people in the UK would have been worse off without QE and the programme has had no effect on pensioners.

Critics of QE say it has increased pension liabilities and driven down annuities. The report came under fire from advisers with DeVere Group chief executive Nigel Green saying there can be “no doubt” that QE has made many pensioners “permanently poorer”.

Evidence must be submitted to the TSC by 1 November 2012.

Chairman of the TSC Andrew Tyrie says: “Some people may be worse off as a result of QE. The impact – on the economy as a whole as well as on individuals – of QE requires careful scrutiny.

“The Treasury committee will make sure that as much transparency as possible is brought to bear on QE’s effectiveness, the winners and losers created by it and its cost to the taxpayer.”

The Bank of England held its QE programme at £375bn in September as the US Federal Reserve launched into a third round of asset purchases last week, known as QE3.

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