Nothingburger. It’s as valid to be concerned about these accounting losses as it would be to suggest that by removing a source of income from the Treasury it’s fighting inflation.
You and a few others seem to be the only posters with an proper understanding of the topic. But I could be wrong - you may be as dumb as me.
Could you point me in the direction of some resources that can help me be literate in this topic? I have already read the BoE paper that gets passed around here.
Here are some interesting rabbit holes I've found to be useful.
1. Central Banking 101 [1]. A terrific no non-sense book. The author is an ex-central banker.
2. Same author's blog[2] and twitter[3] handle is full of good insights and details.
3. Lyn Alden[4] writes well but know that she is biased towards Bitcoin which sort of clouds her writings once in a while.
[1] https://www.goodreads.com/book/show/56863052-central-banking...
If you have this insight, you're already ahead of the game.
The background of orthodox macroeconomics, and the rationale for raising rates in response to inflation, comes from Keynes: https://en.wikipedia.org/wiki/The_General_Theory_of_Employme...