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Holly sheet - Bank ‘prints’ £75bn to try and restart economy

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    Holly sheet - Bank ‘prints’ £75bn to try and restart economy

    Glad I'm not earning pounds anymore. BOE has just decided to help make everyday items more expensive for everybody whilst giving gamblers an early Christmas!!

    The Bank of England said it will pump tens of billions of pounds into the economy to kick-start Britain’s faltering recovery.

    The Monetary Policy Committee today announced plans to inject an extra £75 billion into the financial markets, as it re-started its Quantitative Easing scheme, bringing the total to £275 billion.

    The Bank also confirmed interest rates would be kept on hold at the record low of 0.5 per cent for the 32nd consecutive month.

    The pound tumbled after the Bank’s move, retreating from $1.5476 against the dollar immediately before the announcement to $1.5300.

    Economists had expected the Bank to relaunch its QE programme, but many expected it to hold fire until next month.

    However, revised data yesterday revealed that the economy expanded by just 0.1 per cent in the second quarter, instead of the previous estimate of 0.2 per cent, suggesting that Britain is dangerously close to slipping back into recession.

    Meanwhile, tensions have been rising in financial markets amid continued uncertainty over how the euro area will cope with the sovereign debt crisis.

    QE has been on hold at £200 billion since the beginning of last year amid inflation that has remained consistently above the Bank’s 2 per cent target.

    The programme involves the Bank creating electronic money and using it to purchase UK government bonds. The hope is the financial institutions that sell the bonds, known as gilts, to the Bank will use the money to purchase riskier assets such as corporate debt and shares.

    This could hopefully ease logjams in credit markets and bring down the cost of borrowing in the broader economy.

    The Bank said its rate-setting committee had voted to increase the size of its Asset Purchase Programme by £75 billion to a total of £275 billion.

    “Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally,” the Bank said. “These tensions in the world economy threaten the UK recovery.”

    Ian McCafferty, CBI Chief Economic Adviser, said the MPC had acted promptly by extending quantitative easing: “This measure will help support confidence, but we need to recognise that its impact on near term growth prospects is likely to be relatively modest. Only once the turmoil in the Eurozone is resolved will confidence be fully restored.”

    Graeme Leach, Institute of Directors chief economist, said: “What did we want? More QE. When did we want it? Now. Near-zero GDP and money supply growth made a compelling case and the Bank of England was right to launch QE2. It could be argued that the Bank of England was slow to introduce QE the first time, but thankfully it hasn’t made the same mistake twice.”

    However, David Kern, chief economist at the British Chambers of Commerce (BCC), said that more QE alone was not enoughto increase business confidence: “We urge the MPC to look at other radical methods. The Chancellor’s intention to use credit easing methods to help stimulate the flow of credit in the economy is a welcome initiative, but its implementation will take time and the MPC is better placed to move more quickly.”
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    KUATB
    And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

    Comment


      #3
      KUATB - http://forums.contractoruk.com/gener...ur-pocket.html

      Comment


        #4
        KUATB
        And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

        Comment


          #5
          Originally posted by Mich the Tester View Post
          Be fair, internet signals take longer to reach Utopia.

          Sorry, I mean Germany.

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            #6
            That's a £1000 quid each. Boomed! Luvverly dubberly. When do we get the cheques through the post?

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              #7
              FFS, give scooter a break - he is an engineer not a board reader!!!

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                #8
                Originally posted by AtW View Post
                FFS, give scooter a break - he is an engineer not a board reader!!!
                Indeed.
                "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

                Comment


                  #9
                  "A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George Orwell

                  Comment


                    #10
                    Originally posted by Paddy View Post
                    People certainly knew how to make their own cheap entertainment in those days. Nothing like slapping another blokes arse in leiderhosen for a fun packed day of merrymaking. Om pa pa, om pa pa.... A guy is slapping his own head too, what a character. The women are probably waiting for the gangen bangen to start.

                    Comment

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