Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

King holds firm on stimulus - for now

King holds firm on stimulus - for now

The Bank of England has decided not to extend its stimulus programme.

The meeting of its monetary policy committee (MPC) was likely to have been a close call, economists said, but the majority of rate and policy setters agreed the parameters of its quantitative easing (QE) scheme should remain unchanged.

'The MPC’s decision to leave policy on hold today would not have been an easy one and the vote could have been quite close,' Capital Economics reacted.

Although the UK moved out of recession when GDP data was last published by the Office for National Statistics, the economy was given a boost by the Olympics, which were held over the summer.

The effect of the 2012 Games is likely to prove transient, and follow-up publications by the ONS highlighted key areas of weakness, which could justify more stimulus further down the line.

'We think that more policy stimulus will be required in the coming months – the question is whether the committee feels it has the tools to deliver it,' the consultancy argued.

But Mervyn King (pictured), the governor of the Bank of England, previously said he and the MPC would only give additional stimulus the green light if there was a clear benefit to the economy.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter