# Asset Purchase Facility Annual Report 2025/26

> Asset Purchase Facility Annual Report 2025/26. A business report — sourced from Bank of England Publications.

*Section: Business — By Marcus Vale (Editor-in-Chief & Business & Markets Editor) — Published July 12, 2026 — 1 min read*

Canonical URL: https://dailyjunction.org/business/asset-purchase-facility-annual-report-2025-26
Tags: annual, asset, bank of england, business, facility, purchase

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The Bank of England has published the annual report of its Asset Purchase Facility, the vehicle through which the central bank conducted the quantitative easing programme that expanded its balance sheet to nearly £900 billion during the period of exceptional monetary stimulus.

The report provides a detailed account of the facility's operations, finances and risk management during a year in which the Bank continued to reduce its holdings of government bonds, a process known as quantitative tightening. The facility's holdings of gilts fell by approximately £100 billion during the year, as the Bank allowed bonds to mature without reinvesting the proceeds and, in some cases, sold bonds into the market.

The report also provides an accounting of the financial implications of quantitative easing and tightening. The facility recorded a loss of £14 billion for the year, reflecting the fact that the interest the Bank pays on the reserves it created to purchase bonds now exceeds the interest it receives on those bonds. The loss is indemnified by the Treasury, meaning that the cost ultimately falls on the public finances.

The report acknowledges the controversy that surrounds the asset purchase programme, which has been criticised for contributing to wealth inequality by inflating asset prices, for blurring the boundary between monetary and fiscal policy, and for creating risks to financial stability that are not yet fully understood. The Bank defends the programme as a necessary response to exceptional economic circumstances and argues that the costs of not acting would have been far greater.

## Sources

- [Bank of England Publications](https://www.bankofengland.co.uk/asset-purchase-facility/2026/2025-26)

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