BoE to "print money" confirmed!

machofairy

http://business.timesonline.co.uk/tol/business/economics/article5851028.ece


£75bil in quantitive easing...
This looks like curtains for the already weak sterling. Also expect inflation to shoot up, as a result. Not a good time for price rises when money is hard to come by!

StevieJ

machofairy wrote: »

http://business.timesonline.co.uk/tol/business/economics/article5851028.ece


£75bil in quantitive easing...
This looks like curtains for the already weak sterling. Also expect inflation to shoot up, as a result. Not a good time for price rises when money is hard to come by!

Is that all, I thought it was supposed to be 150 bil

luvpump

Over £1200 for ever Man Woman & Child in the U.K, all to cover up the Banks colossal Mistakes !! Savers really are being Screwed ..

smartn

luvpump wrote: »

Over £12000 for ever Man Woman & Child in the U.K, all to cover up the Banks colossal Mistakes !! Savers really are being Screwed ..

Are you shure of that figure.... sounds amazingly high to me (sort of factor of 10 maybe?)

luvpump

Yeah added another 0 on :rolleyes:

Pound

So... is now a good time to convert all my money to another currency, maybe Euros or USD? If the pound is almost guaranteed to start getting weaker then I should be at some point be able to exchange my money back and make a profit?

mr_jetlag

Pound wrote: »

So... is now a good time to convert all my money to another currency, maybe Euros or USD? If the pound is almost guaranteed to start getting weaker then I should be at some point be able to exchange my money back and make a profit?

No. USD is on the same course (QE and zero rates), though they may recover first. £ weakness already priced in the markets. They have barely budged since the announcement. Euros are getting weaker as well, or haven't you noticed we are back in the teens (1.10++)?

lostinrates

I don't really understand the ripple this has had into the exchnge rate with Euro....now my Euros are worth less? Go figure!

Andrew64

I'm wondering where all this money actually goes. But wherever it does go, I doubt that any of us will see any of it! We'll probably notice it when the recovery eventually comes - in the shape of double-digit inflation!

Pound

mr_jetlag wrote: »

No. USD is on the same course (QE and zero rates), though they may recover first. £ weakness already priced in the markets. They have barely budged since the announcement. Euros are getting weaker as well, or haven't you noticed we are back in the teens (1.10++)?

I don't really keep track of the currency. I just know that the Euro is worth a lot more than it was two years ago, what direction it's going now I'm not sure. I might buy some Zimbabwean dollars the way things are going.

mr_jetlag

Pound wrote: »

I don't really keep track of the currency. I just know that the Euro is worth a lot more than it was two years ago, what direction it's going now I'm not sure. I might buy some Zimbabwean dollars the way things are going.

Sorry for being so abrupt earlier... wife asked me the same question this morning

The Euro is in even worse shape than the pound for now, since the ECB tried to prop up their interest rates and are much more conservative in monetary policy. So the markets are pricing them down in the expectation that the Euro will eventually have to slash rates to near enough 0 and QE same as everyone else is doing. Half the Euro countries are getting deeper into debt, all have falling or zero GDP growth, and Germany is unwilling to bail them out.

The engines of growth in recent years were Spain, Ireland, and the eastern bloc... all of them are now in deep trouble. So the ECB will have to do something to avoid defaults in one or more of these countries. Although their debt is credit rated separately, their troubles drag down the creditworthiness of the Eurozone as a whole.