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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Bank lending continues to fall

The Bank of England has just published its Trends in Lending report which seems to present nothing but bad news. It says that in the second quarter of 2009 total net lending to businesses fell across all the main industrial sectors.  Gross lending (not allowing for any repayments) fell from £42.9bn in the first quarter of 2009 to £27.3bn in … Continue reading

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A difficult position for a long time to come

“We will still find ourselves in a difficult position for a long time to come”, said Mervyn King, governor of the Bank of England, in the Bank’s latest quarterly inflation report. He noted that the economy is still in a deep recession and our financial system remains “fragile”.   In fact the governor reported bad news and good news as … Continue reading

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