Quantitative easing to expand by £25bn

The Bank of England’s Monetary Policy Committee has just confirmed that Bank Rate will remain at 0.5%, as it has since early March this year. However, the MPC decided to extend its asset purchase programme to the tune of an additional £25bn, to reach a total of £200bn.   The Committee set the scene by noting that output has fallen … Continue reading

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Recovery being hindered by lack of credit

Tight credit conditions and a rise in the cost of borrowing are likely to weaken the UK’s recovery according to Britain’s manufacturers. This is the result of a survey just conducted by the EEF, the manufacturers’ organisation. It is particularly surprising given the historically low level of the Bank of England’s base rate at 0.5% and the efforts the Bank … Continue reading

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Inflation Targeting: Learning the lessons from the financial crisis

On Tuesday of this week, Spencer Dale, Executive Director and Chief Economist at the Bank of England, used the above title as his talk to the Society of Business Economists, and I will try to summarise his main themes.   He noted that the sudden end to a long period of economic stability has led to the inflation targeting framework … Continue reading

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Please Sir, may we print more money?

The minutes of the Monetary Policy Committee of the Bank of England were published yesterday, covering their meeting on 4th and 5th of February at which they voted to reduce the Bank Rate by 50 basis points to 1.0%.   The minutes provide a fairly grim summary of the ongoing crisis in the world economy with talk of a “worsening … Continue reading

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