MPC encouraged to increase quantitative easing in the UK
The Bank of England MPC has today been encouraged to increase the £200 billion quantitative easing program which many believe helped the UK economy recover from the earlier stages of the economic downturn. The program simply increases the liquidity available to the banking arena and the business arena thereby oiling the wheels of commerce and the UK. So who is calling for the MPC to reintroduce the quantitative easing program?
Marton Weale is the new MPC member who is encouraging the Bank of England to look towards quantitative easing as a way of reducing the impact of the forthcoming economic downturn and also hopefully avoiding a double dip recession. There have been rumours for some time that the Bank of England is reconsidering the quantitative easing program which could potentially be reintroduced to the mix in the short to medium term.
It is unclear what level the quantitative easing program could reach as the initial £200 billion made available by the Bank of England was used up some time ago. Whether the Bank of England could afford to reintroduce the quantitative easing program or indeed whether it cannot afford to reduce the program, from an economic point of view, is a question on the lips of many economists.
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