UK cuts interest rates and officially introduces QE
The Bank Of England cut interest rates again on Thursday by 50 basis points, leaving them at 0.5% as expected. This was coupled with the announcement that Quantitative Easing will now take place with an initial £75Billion being injected into the economy. The MPC have set a benchmark of £150Billion to enable inflation to get to it’s required rate of 2%. Normally deemed as a negative move in an economy, this decision appears to be supportive of the pound with the current economic crisis enforcing such actions. Fridays Production Price Index came in higher than expected at 0.6%, however, the annual rate was 0.5% which was down from Januarys revised rate of 1.5%. Read Full Article »
