|>>|| No. 5754
As far as I understand it Quantitative Easing is in essence HM Treasury buying both government gilts and private sector assets, as below:
>Asset Purchase Facility
>At 31 March 2015 the authorised limit of asset purchases was £385 billion, comprising £375 billion financed from central bank reserves and a
further £10 billion for the purchase of private sector assets, financed by the
issuance of central bank reserves, Treasury bills and the Debt Management Office’s
cash management operations.
Who decides what private sector assets are being bought? Is it just a selection of shares from the FTSE100, is it company bonds or assets such as real estate?
Does anyone know?