Wednesday 22 July 2009

MPC minutes trigger jitters in the gilt market over QE plans

Telegraph
"The UK gilt market was alarmed on Wednesday after the minutes of the Bank of England's July Monetary Policy Committee meeting raised fears that it would not extend its quantitative easing (QE) programme beyond the £125bn already committed. .....Economists said the comments overall cast serious doubt over whether the MPC would opt to extend its purchase programme next month. "While we would by no means rule out the Bank deciding to use the final £25bn within its QE pot at the August meeting, these minutes give no indication that this is the MPC's 'default position'," said Richard McGuire, fixed income strategist at RBC Capital Markets."

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