Will the Bank of England reintroduce quantitative easing?
Last November the Bank of England placed on hold the quantitative easing program which had already swallowed up £200 billion of taxpayer's money. This is a system which was essentially to act as oil for the UK economic cogs and wheels and ensure that everything kept moving. It was a great benefit to UK businesses who were struggling to obtain liquidity in the depths of the downturn. So will the Bank of England eventually bring back quantitative easing?
While there has been no comment for some months now regarding this particular fiscal stimulus program there is no doubt that certain members of the MPC have considered calling for the program to be reinstalled. Whether this will happen in the short to medium term remains to be seen but there is no doubt that the UK economy is starting to slow down and if concern turns into panic then we could find ourselves in yet another difficult situation.
While there are many different opinions regarding what the Bank of England should do and should not do in the short to medium term there are very few people who would swap their current places for a seat at the MPC table.
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