Thursday, August 06, 2009
Bank shocks the market with more QE
Posted by David Smith at 12:05 PM
Category: Thoughts and responses

Most people were lined up for a continued pause in quantitative easing by the Bank of England. Instead the monetary policy committee (MPC) chose to increase it by another 50 billion to 175 billion, above the previous 150 billion limit, making two surprises in two months.

This may be the key to it: "Underlying broad money growth has picked up since the end of last year but remains weak. And though there are signs that credit conditions may have started to ease, lending to business has fallen and spreads on bank loans remain elevated."

The full statement is here.