Bank Of England under pressure to increase quantitative easing fund
In one final push to drag the UK economy out of recession, a number of economists in the UK are putting pressure on the Bank of England's monetary policy committee to increase the quantitative easing fund by at least £50 billion. This would take the "liquidity enhancing strategy" to a total figure of £225 billion, which as pointed out in the Telegraph today, is more than the gross domestic product of Greece.
The fact is that the UK economy is still struggling to pull away from the recession despite the fact we have seen Japan, Germany, France and America start to make strides in the direction of growth. For some reason, despite massive government investment, the UK economy is still dragging its heels and UK businesses are in danger of being left behind as the worldwide economy improves. Whether a further investment of £50 billion into the quantitative easing program will be enough remains to be seen but there is today growing pressure on the UK government and the Bank of England.
Those who have followed the recession closely will be aware that the UK government, and many other independent advisers, have been pushing back the date at which they expect the recession to end, which has injected concern and confusion into the investment markets.
Share this..
Related stories
IMF suggests worldwide GDP to fall by between 0.5% and 1.5%
The International Monetary Fund (IMF) is alleged to have collated data that shows that the worldwide economy would be shrink by between 0.5% and 1.5% as measured by GDP during 2009. The IMF then sees a gradual recovery in 2010 with the worldwide economy set to improve by between 1% and 2%. So what does this mean for the future?
While the worldwide fall of up to 1.5% in GDP is worryi...
George Osborne urges the Bank of England to cut interest rates next week
All political parties, business associations and consumer interest groups have joined in urging the Bank of England to cut UK base rates next week in a move to try and relieve some of the pressure on business and consumers. Some are calling for a half point cut, and more, in order to have any meaningful impact on the UK economy. If the Bank decided to retain rates at current levels we are highly l...
Read MoreMarc Bolland confesses Marks & Spencer was too big to ignore
Marc Bolland, the chief executive of Morrisons, has confirmed that his appointment as the head of Marks & Spencer in early 2010 was just too good an opportunity to ignore. This came on the day when he fronted the Morrisons figures which confirmed that sales growth was starting to flatten out as the economy moves into a new phase. So what next for the chief executive of Morrisons? There is no do...
Read MoreIs the UK government split on joining the euro?
While Minister for Europe, Caroline Flint, has today effectively ruled out a short-term move to join the euro this would appear to be seriously at odds with the views and opinions of Lord Mandelson for one. Slowly but surely the increasing pressure on the UK economy and the UK currency is seeing a number of cracks appear in the Labour Party at a time when teamwork and "singing from the same hymn s...
Read MoreUK retail sales stagnant in September
In a disappointing development for those who believe the UK recession is now over it has been revealed that UK retail sales were stagnant in September with consumer spending less on food and clothing as they continue to tighten their belts and save as much money as possible. While this is the second month of stagnation in retail sales, after a number of better-than-expected figures in previous mon...
Read More