The Bank of England are likely to engage in further QE in February after the current round finishes unless the economy improves (Whats the chances of that?) according to Martin Weale, a member of the Bank’s Monetary Policy Committee. Presently inflation is running at 5% but the Bank has forecast a sharp fall in 2012 and said it is more likely to be below the 2pc target than above it by 2013/14.

The Bank of England restarted QE in October, when it was clear that the eurozone debt crisis would hit UK growth. It announced a further £75bn, on top of the £200bn of QE between March 2009 and January 2010.

 

source The Telegraph.

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