Bank of England launches ‘QE2’

THE Monetary Policy Committee launched a fresh round of quantitative easing today on the back of concerns about the strength of the UK recovery.

Its decision to increase the size of its QE programme from £200bn to £275bn came in the wake of a wave of downbeat data on the economy including revised second quarter growth figures.

Coverage of the MPC’s decisions is brought to TheBusinessDesk.com’s readers in association with stockbrokers Redmayne-Bentley.

Senior stockbroker David Scott said: “The only question about today’s meeting was whether or not the MPC would fire up the printing presses again in light of the deteriorating economic back drop both at home and abroad, particularly Europe.

“Yesterday revision of second quarter GDP figures to 0.1% from 0.2% are a real concern that the economy is sliding back into recession and with the policy tool box almost exhausted the MPC will have everything crossed that this continuing experiment gives some boost to a lifeless economy.

“My fear remains that it will not, as confidence is the missing ingredient and until the Euro crises is fully resolved it will remain on its back slowly being leeched away.”