With the second round of the quantitative easing programme complete, the Bank of England now need to consider whether they are to extend it further, or leave the total £325 billion programme unchanged.
Many economists believe the Bank of England will opt for the latter option, following the rise in inflation to three point five percent during March; which has raised hope that the Consumer Price Index (CPI) will reach its target of two percent during 2012.
The British Chambers of Commerce have urged the Monetary Policy Committee (MPC) to keep the quantitative easing programme at its current levels; although they have again called on the government to consider creating a “business bank” to help improve lending to small and medium sized businesses throughout the UK.
Along with business leaders calling for the Bank of England to maintain quantitative easing at its current levels, Adam Posen, a MPC member who has previously been calling for further quantitative easing to be introduced, has also changed tact and called for the bank to keep the programme as it is.
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