The Bank of England further added a tranche of $50 bln in QE even as the effect of new VAT on inflation tapers off, and theinfation rate came at 4.2% as before the BoE met last week and maintained interest rates ( on commercial bank reserves) at 0.5%
The $325 asset purchase program would help add liquidity in light of increased inflation traction control even as growth remains slow tracked by loss of jobs and continued non performance by banks . In an interesting aside, a good use of QE suggested in one of the informed QE blogs has been to fund asset purchases of Greek bonds directly and like the help for Italy get into the assets really hurting European banks even as London keeps itself as a central piece of access for both sides of the pond.
- Bank of England restarts QE with £50bn stimulus (telegraph.co.uk)
- Bank of England ups QE (and tweaks its gilts) (ftalphaville.ft.com)
- BoE’s £50bn stimulus: reaction (telegraph.co.uk)
- Quantitative Easing is stimulating commodity trading, not the real economy (leftfootforward.org)