Thursday, November 05, 2009
Another 25 billion from the Bank
Posted by David Smith at 12:30 PM
Category: Thoughts and responses

I had suggested 30 billion, the Bank has gone for 25 billion, and what's a few billion these days? Today's announcement takes the quantitative easing target up to 200 billion and continues the strategy of gradually reducing the additional stimulus, assuming this holds for the next three months. That's probably right.

The Bank has emphasised both the stock and the flow of asset purchases and it is assuming economic recovery, notwithstanding the numbers from the Office for National Statistics. "A number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.," it said. The Bank's announcement, which also left interest rates unchanged at 0.5%, is here.