Saturday, 2 May 2009

Benefits of new money go abroad

Telegraph
"Billions of pounds "printed" by the Bank of England as part of its quantitative easing programme have been leaking overseas, it has emerged. ....However, the figures, published deep in a Bank document on Friday, shed light on the fact that the system has fallen short of expectations in its infancy.The statistics show that the Bank spent £15bn on gilts in March but that the biggest sellers of these in that period were overseas investors, who cut their gilts portfolios by £7bn. Investment banks, meanwhile, sold £2bn, while non-bank investors, which includes the pension funds and insurance groups which the Bank had intended to be the chief recipients of the quantitative easing money, sold only £5.9bn."

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