Gilts market unmoved by Bank of England MPC
The gilts market was unmoved after the Bank of England's decision to suspend the quantitative easing program was confirmed today. In reality the closure of the quantitative easing program, at least in the short term, was well flagged and very much expected by analysts and investors. However, the minimal movement in the gilts market would appear to indicate investors are now happy that the UK government is able to refinance current debt going forward.
However, there is still uncertainty in the overall financial markets as to whether the decision to suspend the quantitative easing program is sensible because the UK economic upturn appears to be fragile at best. The problem is that at some time the program would have to end and many believe the decision to close the program in the short term is a risk worth taking. At some point the UK economy will have to stand on its own 2 feet and what better time than when the economy officially moved out of recession?
It will be interesting to see whether the gilts market does in fact respond over the next few days as more and more opinions pour into the marketplace.
Share this..
Related stories
Landlords invest mainly in fixed-rate deals
Although recent a study has shown that most buyers are split almost exactly in half when choosing between a variable or fixed-rate mortgages, landlords are not so indecisive, according to research.According to Paragon, as many as 70 per cent of buy-to-let investors have opted for fixed-rate deals, safeguarding themselves against a much anticipated rise in the interest rate.Even though fixed-rate m...
Read MoreIs a tax on chocolate really helpful?
This week we saw a Lanarkshire GP call for the UK government to consider imposing a tax on chocolate as a way to ease the ever worsening obesity situation in the UK. While this suggestion was treated with the contempt it probably deserved on the face of it, under the surface there are serious concerns about the obesity problem hitting the UK and the cost to the National Health Service. But is a ch...
Read MoreRoyal Bank of Scotland announces £3.6 billion loss
Royal Bank of Scotland has today announced a £3.6 billion loss for 2009 which is far less the £5 billion which analysts had been expecting and but a fraction of the £24 billion lost in 2008. While this will be a relief to UK taxpayers, who have an 84% stake in the company, is by no means the end of the troubles for Royal Bank of Scotland and there is still much hard work to be done. The company...
Read MoreUK mortgage approvals down over 70% year-on-year
The Bank of England has revealed a serious 72% drop in mortgage approvals when comparing October 2007 against October 2008. The exact number of mortgage approvals in October was 32,000 which was a fall of 1,000 from September to a level not seen since 1993 when records began. When compared to the 88,000 mortgages approved last October and 114,000 in May 2007 the figures literally speak of themselv...
Read MoreThe Prudential Bails Out Cable And Wireless
In a move which is being described as a win win for all parties involved it has been reported that Cable and Wireless has taken out a £1 billion annuity with Prudential to safeguard the future of the company's pension fund and dramatically reduce the liabilities of the scheme.
In a fairly complicated action the pension fund members will still be connected to Cable and Wireless bu...