14 July 2009

QE to be Stopped say Bank of England

The Bank of England has finally clarified what exactly it is they plan to do when the current process of quantitative easing is over.

They had surprised foreign exchange and other financial markets last week by giving a distinctly vague announcement about the future of QE - enough for markets to react with lower confidence levels. Now, they have said that they are set to begin an "exit strategy" on the policy. How they will do that is not yet decided.

The decision to stop the booster policy has left markets slightly uneasy. Surely it is desperately needed?

Unions have already complained that cuts to public spending will see the jobless number rise yet more (from its already dire level).

The Bank also said that the current QE policy would take months to take action....

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