Quantitative easing v credit easing – the Bank of England view
Last week, the Governor suggested the bank is involved in Credit Easing and the time has not yet come (but may soon) for QE. But the minutes of the MPC meeting clarify the issue definitively. At...
View ArticleBank begins Quantitative Easing –“bring out your gilts”
The Bank of England officially launched quantitative easing, buying £2bn worth of UK government bonds at the first of a series of reverse auctions this week. In what has been deemed a success, the...
View ArticleUK interest rates on hold, QE boosted to £125 billion
The Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate at 0.5%. The Committee also voted to continue with the programme of asset purchases financed by central bank...
View ArticleGilt Yields on Planet ZIRP – The QE paradox – why Gilt Yields rise.
The introduction of a Zero or virtual Zero interest rate policy in the USA and UK led to the concept of Planet ZIRP. As we wrote in December - "Welcome to Planet ZIRP. Unfortunately, we do not have a...
View ArticleUK CPI inflation remains at 3.1%
CPI inflation in September was 3.1% unchanged from the figures recorded in July and August. Service sector inflation fell to 3.7% from 4.0% but goods inflation increased from 2.4% to 2.6%. This is not...
View ArticleThe UK is in a liquidity trap – say no to more QE on planet ZIRP
Last week, the Governor of the Bank of England said This is the most serious financial crisis we have seen since the 1930s, if not ever. Well is it? Just like the 1930s the UK is in what we call a...
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