More QE on the cards as eurozone troubles continue
Sunday 17 June 2012
The Bank of England could flood £50bn more into the struggling UK economy within weeks as the latest turbulence from the eurozone plays havoc with UK recovery hopes, experts warn.
Rate-setters are poised to act following the €100bn (£81bn) rescue for Spain's crippled banks and an election in Greece which markets fear could tip the stricken nation out of the euro.
The Bank of England Governor Sir Mervyn King warned in his Mansion House speech of a "large black cloud of uncertainty hanging over not only the euro area but our economy".
The Bank's so-called quantitative easing (QE) programme currently stands at £325bn, but analysts at Barclays Capital said that its monetary policy committee may crank up the printing presses again as soon as next month.
Its chief economist Simon Hayes said: "We previously forecast no further QE. The primary reason for our change of view is the deepening euro crisis. This is infecting the UK economy through tightening credit conditions and weak household and business confidence."
Further QE will come alongside £140bn in moves to pump funds into the banking system and boost lending to business.
May inflation figures this week, which should show the cost of living steady at 3 per cent, will also give rate-setters leeway to act.
Oscar Pistorius trial: Defence's own witness contradicts athlete's version of events
Oscar Pistorius trial: The case against Oscar Pistorius – and why the prosecution claims his story doesn't add up
Almost 40m gallons of drinking water discarded – because a man urinated in it
Peaches Geldof funeral: Private ceremony to be held at same place as her mother Paula Yates on Easter Monday
Shropshire criminals ‘using unmanned drones and infrared cameras to find illegal cannabis farms’ – and then steal from the growers
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Are you turning into your dad? The top ten signs you've embraced dad-ism revealed as survey says 38 is age men turn into their father
- 2 Overheard in Waitrose: documenting the chatter in 'Britain's poshest supermarket'
- 3 Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Grace Dent on TV: Game of Thrones has jumped the shark
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...