Pensions require wiggle room for exceptional circumstances

While quantitative easing is considered essential for the wider economy, it is very strong medicine for defined benefit pension schemes

The Bank of England’s Monetary Policy Committee has turned once again to quantitative easing as the intervention of last resort to try to get the UK economy moving again. The latest announcement was for a further £50bn of asset purchases, on top of the extra £75bn announced last October.

While quantitative easing is considered essential for the wider economy, it is very strong medicine for defined benefit pension schemes that see their funding positions worsen as gilt yields tumble.

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