Economy: Quantitative Easing — Question

Part of the debate – in the House of Lords at 2:45 pm on 12th November 2012.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 2:45 pm, 12th November 2012

My Lords, what the Bank of England has been doing through the quantitative easing programme has been targeted at 2% inflation but it has been completely clear about the other effects of the policy on the economy, GDP, inflation and equity prices-it says that that was a large but uncertain impact, estimated within the range that the right reverend Prelate gave. It is wrong to see that as a one-off windfall. In that case, was it a one-off disastrous fall in asset prices caused by the banking crisis that preceded it? It is difficult to say what was the one-off windfall.