Business Advice for all UK firms from starting a business to flotation
Interest rates held again at 0.5%
The Bank of England has announced that interest rates have been held again at the record low of 0.5% for the 11th consecutive month.
The Bank has also announced that it has decided against extending its quantitative easing programme (QE).
Under QE, the Bank has pumped new money into the economy by buying assets such as government bonds, as a way to boost lending by commercial banks. It was announced last week that the Bank has spent all £200bn of its QE funds so far.
"Although there is no current need to increase the QE programme, it is very important for the MPC to persevere with expansionary policies. Despite some tentative signs of optimism, the economy remains weak and fragile," said David Kern, chief economist at the British Chambers of Commerce.
"To sustain confidence, the MPC must make it clear that it does not plan to start reducing the QE stimulus below £200bn, and that it will not contemplate any near-term increases to interest rates. The main priority must be to counter the threat of a double-dip recession."
Post Date: February 4th, 2010
The Bank has also announced that it has decided against extending its quantitative easing programme (QE).
Under QE, the Bank has pumped new money into the economy by buying assets such as government bonds, as a way to boost lending by commercial banks. It was announced last week that the Bank has spent all £200bn of its QE funds so far.
"Although there is no current need to increase the QE programme, it is very important for the MPC to persevere with expansionary policies. Despite some tentative signs of optimism, the economy remains weak and fragile," said David Kern, chief economist at the British Chambers of Commerce.
"To sustain confidence, the MPC must make it clear that it does not plan to start reducing the QE stimulus below £200bn, and that it will not contemplate any near-term increases to interest rates. The main priority must be to counter the threat of a double-dip recession."
»
- Login or register to post comments
- Printer friendly version
Post Date: February 4th, 2010
Follow us on
Accounting Advice | Banking & Finance | Business Continuity | Entrepreneurs | Franchising Advice | HR/Payroll Advice Insurance Advice | Internet Advice
I.T. Advice | Legal Advice | Marketing Advice | Office Management | Pensions & Benefits Planning Advice | Property/Relocation | Recruitment Advice
Starting a Business | Telecommunications | Training/Education Travel Advice | Utilities Advice | Vehicles
copyright © 1998-2009 Newbusiness.
Homepage | Terms & Conditions | Copyright & Trademarks | Privacy Policy | Sitemail & Forum Policy | Sitemap
