Bank of England deputy Governor Charlie Bean downplays QE effect on pensioners

Pensioners have not been hit as hard as they claim by quantitative easing (QE) and should accept that they must bear the burden of the downturn alongside working households, according to the Bank of England's deputy Governor Charlie Bean.

The comments by Mr Bean to the Scottish Council for Development and Industry are likely to inflame pensioner groups, who have argued that QE is eroding their incomes.

Ros Altmann, director-general of Saga Group, said on Tuesday: "QE has permanently impoverished more than 1m pensioners, and thousands more annuity purchasers will receive reduced pensions every week."

Mr Bean acknowledged that pensioner incomes have been hurt by the impact of QE, but claimed that the Bank's £325bn money-printing policy has lifted the asset value of their portfolios and helped secure the economic recovery. Read more.....