Thursday, November 04, 2010
No QE2 from the Bank
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

Despite the green light provided by the Federal Reserve's announcement of a further $600 billion of quantitative easing, it would have been a big surprise if the Bank of England had followed suit after recent strong data. Sure enough, Bank rate was left unchanged at 0.5% and the existing 200 billion of QE maintained. More will be revealed with next week's inflation report.

Earlier, the Halifax announced an expectations-beating 1.8% rise in house prices in October, following an even bigger September fall. Behind the big swings is a gentle softening of prices.