MPC united on rates and QE but Japan adds to pressure
Thursday 20 September 2012
Pressure on the Bank of England to return to the printing presses mounted yesterday as Japan became the latest central bank to take emergency action to spur flagging growth.
The Bank of Japan caught markets off-guard as its governor, Masaaki Shirakawa, warned that the recovery of the world's third-biggest economy might be delayed by six months due to ebbing global growth.
The bank – which has been battling deflation and slow growth for two decades – expanded its QE by 10 trillion yen (£79bn) and said a recent pick-up in the economy "has come to a pause".
Minutes of the latest Bank of England Monetary Policy Committee meeting, released yesterday, showed rate-setters unanimous in keeping interest rates on hold at 0.5 per cent and the scale of its QE operations at £375bn.
But one member – almost certainly the doveish David Miles – argued that there was a "good case" for announcing more action two weeks ago.
Although most MPC members are holding fire on more QE, waiting to assess the impact of the Bank's £80bn Funding for Lending scheme, the pound immediately sank against the dollar on the release of the minutes as markets factored in the chance of more QE action.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 3 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 4 AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
- 5 Game of Thrones is most-pirated TV show of 2014
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Millions of Britons struggling to feed themselves and facing malnourishment
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...