Two ago, economists and analysts are still arguing for the British when the interest rates, with the debt crisis in Europe and the UK economic data continued to slump, the second quantitative easing (QE2) at the beginning again put on the 9 schedule.

Bank of England last 19 quarterly summary of the quantitative easing policy shows that the British QE2 on stage soon. “Bank of England as early as the next restart the printing press, the latest will be released in 11 QE2.” Citigroup economist Sanders (Michael Sanders) is expected.

Hongyuan (000562) macro strategist Dr. Deng Haiqing also told this newspaper that at present it seems, the Bank of England launched the program 10 may be 200 billion ￡ quantitative easing policy.

Bank of England to give evidence in the report, focusing on description of quantitative easing on the economy had a positive impact. 20093-20101, Bank of England to buy ￡ 20 billion of assets, for the extra money into the economy, stimulate the nominal spending.

Sanders said, from the reports, the Bank of England that the QE is a powerful tool that can increase the nominal GDP, and to prevent inflation from 2% inflation target is too low; Second, the quantitative easing policy may also support real gross domestic product. QE is satisfied that the Bank of England monetary policy interest rate to zero a natural extension, not just to deal with deflation and economic recession in case of retention initiatives.

Determination led the Bank of England launched the QE2 important reason is the judge outside the euro zone sovereign debt restructuring is inevitable, it also means that the UK economy adversely affected.

The current UK economic prospects, there are still downside risks, the job market and corporate liquidity are significant signs of fatigue, for an additional monetary stimulus is “a very urgent need.”

Bank of England in addition to preparing re-shot to buy assets, interest rates once again pushed back the timing. Goldman Sachs predicts that the UK rate hike from the fourth quarter of 2012 postponed to 2013.

20 days, sterling-dollar exchange rate dropping $ 1.57, has the lowest at this level 1. Prior to this, by raising interest rates expected to push sterling was once close to U.S. $ 1.65. RMB exchange rate against the pound from the earlier time of 1:10.5 around the fallen 1:10.05.

Currency traders that the British pound will not rebound in the short term, but there is still downside.

The International Monetary Fund (IMF), the data needs of sterling against the U.S. dollar to 1 pound $ 1.46, in order to maintain purchasing power parity.

British record low bond yields recently, the British tried to sell bonds. 9 Wang led the Chinese delegation went to Britain in early to participate in bilateral financial dialogue, the British Chancellor of the Exchequer Osborne on the recommendation of the Chinese side may wish to buy British government bonds, called Treasury yields are at their lowest level in one hundred.

Fact, not a market without fear of Britain’s solvency, but the spread of the debt crisis, investors have been relatively reliable for the United States, Germany, Britain and bonds as an investment haven, pushing down its yield.

QE2 also increased inflation fears. Royal Bank of Scotland (RBS) Andrew McLaughlin, chief economist has warned again in the UK inflation edges. He said the UK CPI inflation rate from 4.4% in seven to 4.5% in the next few inflation rate will continue to rise; the UK economy to balance difficult to achieve the target also shown.

Related posts

• ￥ 200 billion pension disappeared more than half
• ￡ exacerbated concerns about slowing economic growth slightly down
• ￡ 325,000 EU to change the emblem has been approved
• ￡ 0.5% to keep the benchmark interest rate
• 萨科齐默克尔 EU treaty to amend the proposal put