How should Britain handle £200bn in quantitative-easing losses?

Like most of its peers, Britain has leant heavily on QE—whereby central banks stimulate the economy by creating money (in the form of bank reserves) and buying assets (most often, long-term government bonds)—since interest rates fell to near-zero during the 2007-09 financial crisis. The result is to lower bond yields and boost liquidity—stimulating more borrowing and growth—and to leave central banks sitting atop balance-sheets stuffed with bonds.