Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Hold · Central bank financing

Reserve-financed government bond purchases (QE)

What it is
The central bank buys a stated quantity of outstanding government bonds with newly created reserve balances, often through an asset purchase facility.
Why it counts
Purchases remove duration risk from private portfolios, raise bond prices and reduce the state's market financing costs.

When it was in force

  • United States: 2009, historical
  • United Kingdom: 2009, historical; its end is not documented

2 examples

  1. United States

    2009Historical

    The FOMC authorised up to $300 billion of longer-term Treasury purchases over six months alongside agency purchases.

    Federal Open Market Committee decision of 18 March 2009, Treasury component of the large-scale asset purchase programmePrimary source
    “the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.”

    federalreserve.gov (opens in a new tab)Checked: quote matched on the page by script

    United States today: index 42.9

  2. United Kingdom

    2009Historical

    Its end is not documented · As cited: March 2009 (initial decision)

    The MPC authorised £75 billion of reserve-financed asset purchases, with gilts filling the amount not met by private assets.

    Monetary Policy Committee decision of 4-5 March 2009; Asset Purchase FacilityPrimary source
    “The Bank of England should finance £75 billion of asset purchases by the creation of central bank reserves.”

    bankofengland.co.uk (opens in a new tab)Checked: quote matched on the page by script

    United Kingdom today: index 44.4

Examples and their dates reviewed .

Further reading

7 more on central bank financing