Thursday, 23 June 2011

Quantitative easing back on Bank of England's agenda

Telegraph
"...Most MPC members feared that "the current weakness of demand growth was likely to persist for longer than previously thought", noting "the fiscal challenges in the euro-area periphery highlighted the potential for further adverse shocks to demand".

As a policy, QE is designed to combat a demand slump.

However, Simon Ward, Henderson's chief economist, described the prospect of more inflation-boosting QE as "dangerous".

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