Thursday, August 6, 2009

BoE raises quantitative easing total to 175 bln sterling - more priniting!

BoE raises quantitative easing total to 175 bln sterling, holds rates - Reuters

Reuters reports the Bank of England extended its quantitative easing programme on Thursday, raising the size of its bond purchase scheme to an unexpectedly large 175 billion pounds from 125 billion, and held interest rates at 0.5 percent. The decision enables the central bank to continue its programme of asset purchases with newly created money -which it started in March to boost Britain's recession-hit economy- as the last of the 125 billion pounds was spent in late July. "The Committee expects the announced programme to take another three months to complete. The scale of the programme will be kept under review," it said in a statement. Economists had been evenly split on whether the BoE would choose effectively to print more money to buy assets such as government bonds and corporate debt. None had expected a change in Britain's record-low interest rates. The BoE has received approval from Britain's finance ministry for the extra money. When the BoE launched quantitative easing with an initial 75 billion pounds in March, the finance ministry had allowed it to create up to 150 billion pounds of new money.

Everyone printing - it's the thing to do I guess. Hey, it makes the markets feel good everytime they do it, it seems. Destroy all currencies and let other assets move up. I also like that they refer to this as a scheme in the article.

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