Pension funds and quantitative easing - speech by Charlie Bean

Charlie Bean begins by reiterating how QE works and what it seeks to achieve, noting that one consequence of the Bank’s gilt purchases is to drive down gilt yields and put upward pressure on the prices of a whole range of assets. He notes that earlier Bank research found that the first round of QE reduced gilt yields by around one percentage point and boosted equity prices by around 20 per cent.

Press release