King Cautioned Against More Spending

March 25, 2009 by admin · Leave a Comment
Filed under: News Briefing

The governor of the Bank of England—Mervyn King, has warned against further significant government spending on stimulating the economy.
As official figures showed a surprise rise in consumer price inflation, Mr King is questioning the wisdom of increasing debt by spending more, given the high levels of UK debt due to the recent stimulus packages. But he said that there was still room for further “targeted and selected measures” in some aspects of the economy.

Tags: Bank of England, significant government spending, stimulating the economy, stimulus package

Bank of England’s Credit Scheme

January 29, 2009 by admin · Leave a Comment
Filed under: Economic Outlook

This afternoon, the Bank of England and the Treasury officially fired the starting gun on a £50 billion scheme, which is aimed at boosting the flow of credit in the economy.
It has been confirmed that next week, Bank of England will set out the framework in which its planned Asset Purchase Facility will operate. These news follow last week’s fresh package of proposals which is aimed at reviving economic activity and taking UK closer to effectively printing money. The policy is very similar to the ones undertaken by the Federal Reserve of US and the Bank of Japan in the last few months.
An immediate rise in gilt yields was sparked the news, with two-year yields rising by 3.3 basis points to 1.51%, five-year yields by 5.3 basis points to 2.887% and 10-year yields by 8.5 basis points to 3.729%.

Tags: "quantitative easing", Bank of England, Credit Scheme, effectively printing money, fresh package of proposals

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