Why should the Bank of England focus on specific sectors of economy?
Slowly but surely it would appear that the Bank of England is on the verge of introducing various fiscal stimulus policies in the short-term. Earlier this week we saw a suggestion that the credit costs associated with specific areas of the UK economy may well be focused upon in the coming days and weeks although why would the Bank of England prefer to focus on specific areas as opposed to the overall economy?
There is no doubt that the likes of the financial sector and the property sector are part of the engine room of the UK economy. These are areas of economic activity which will naturally dictate how the overall UK economy performs and indeed business and consumer confidence. So while focusing of these two particular sectors may seem unfair in the eyes of some businesspeople and consumers in the UK, the benefits of this potential investment should help all in due course. There's also the fact that the UK government and the Bank of England does not exactly have an unlimited pot of money to use with tax receipts under pressure and only now we are seeing the public-sector budget reined in.
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