Recommendation 12

While the Governor played down the impact that decisions over the pace of QT have on the scale of lifetime gains and losses arising from QE and QT, the evidence presented to us shows that there is some trade-off between the two, and more so 36 Quantitative Tightening in terms of annual losses. Furthermore, the Bank and MPC do not consider QT to be an active tool of monetary policy and think that it has minimal economic and financial impacts.