STOCK MARKET WATCH, Wednesday, December 21, 2011.

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11. Bank Of England Policymakers Unanimous In Leaving Rates, QE Unchanged

Last edited Wed Dec 21, 2011, 08:08 AM - Edit history (1)

LONDON (dpa-AFX) - The Bank of England's policymaking body was unanimous in deciding to maintain status quo in December, the minutes of the final rate-setting session of the year revealed Wednesday.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, left the size of bond purchases unchanged at GBP 275 billion and kept the key interest rate at 0.50 percent at the end of the two-day meeting held on December 7 and 8.

Policymakers saw little merit in changing the path of asset purchases in December given the magnitude of the current uncertainties, especially those in the external environment, the minutes said. However, the balance of risks to inflation, as projected in the November Inflation Report, suggests that a further expansion of the asset purchases programme might well become warranted in due course, some members said.

/... http://www.finanznachrichten.de/nachrichten-2011-12/22268188-bank-of-england-policymakers-unanimous-in-leaving-rates-qe-unchanged-020.htm


Bank Of England May Print More Money In 2012

The Bank of England has not ruled out more quantitative easing (QE) in the New Year, the minutes of its monetary policy committee (MPC) meeting show.

The bank's policymakers remain concerned that the economic recovery is slow, and believe that more stimulus will be needed to prevent it from slipping back into recession. The institution's inflation report in November downgraded its forecasts for economic growth to below 1% for both 2011 and 2012, and warned that further turmoil in the eurozone posed a serious risk to the economy...

... In an interview with the BBC, Charlie Bean, a member of the MPC, said that the bank was making contingencies for the event of a eurozone break-up. <-- Shifting attention and blame

QE involves printing money to buy government debt from financial institutions, in theory freeing up capital for them to lend into the real economy - to businesses and consumers. The Bank of England's "asset purchase programme" currently stands at £275bn, after it announced an additional £75bn in October.

/... http://www.huffingtonpost.co.uk/2011/12/21/bank-of-england-may-print-money-quantitative-easing_n_1162396.html?ref=uk