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BoE braced for 3rd wave of financial crisis - The Guardian

The Bank of England is concerned that the UK's banking system is heading for a third wave of crisis that could snuff out fragile signs of recovery in the economy.

On Thursday the Bank surprised the City by announcing that it would pump an extra £50bn of new money into the economy despite recent stockmarket rallies.

Now the Guardian has learned that this increase in quantitative easing was driven by fears in Threadneedle Street that the credit crunch is still sucking the life out of the British economy and the banking sector remains in deep trouble.

(FULL STORY)
http://www.guardian.co.uk/business/2009/may/08/bank-england-recession-economy
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Comments

  • W-shaped recession !!
    love it !!
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker


    But, 'the big risk is you could see a W-shaped recession. We could see policymakers taking back some of the easing too quickly.'

    That is the funniest thing I have heard this year :rotfl: Not a cat hells chance of reversing the monetary easing before the next election.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    StevieJ wrote: »

    But, 'the big risk is you could see a W-shaped recession. We could see policymakers taking back some of the easing too quickly.'

    That is the funniest thing I have heard this year :rotfl: Not a cat hells chance of reversing the monetary easing before the next election.

    I wouldn't say that, 12 months is a long, long time in the current economic circumstances, a couple of months worth of inflation rises for instance could see the bond market fail, thus unleashing Brown's worst nightmare of seeing the BoE having to raise rates, that rate rise will come, it's just a matter of time, and that will dispel any thoughts of a housing market recovery.
  • ad9898 wrote: »
    12 months is a long, long time in the current economic circumstances.

    you are not wrong there !

    base rate 12mths ago was 5.00pct
    infact it was still 5.00pct just 7mths ago :eek:
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    ad9898 wrote: »
    I wouldn't say that, 12 months is a long, long time in the current economic circumstances, a couple of months worth of inflation rises for instance could see the bond market fail, thus unleashing Brown's worst nightmare of seeing the BoE having to raise rates, that rate rise will come, it's just a matter of time, and that will dispel any thoughts of a housing market recovery.

    If if there is even a sniff of that, expect a snap election icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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