BoE Bank Rate to be at 0.5% right until end-Q2 2010

inspector_monkfish

13:10 01Jul09 (GBP) Poll shows median expectation of GBP150bn APF

(GBP) A Reuters poll shows the median expectation for UK BoE Bank Rate is 0.5% right until end-Q2 2010. 44 out of 55 respondents say the BoE's QE programme will be effective, whilst the median expectation remains for the BoE to use up the full GBP150bn available to it for asset purchases.

RufusA

inspector_monkfish wrote: »

13:10 01Jul09 (GBP) Poll shows median expectation of GBP150bn ...for UK BoE Bank Rate is 0.5% right until end-Q2 2010.

Seems the results are pretty much unchanged from the previous two months! Marginally more economists are marginally less optimistic!

However I notice in this months poll there is talk of exceeding the GBP150bn, as gilt yeilds haven't fallen (against BoE's plans), therefore "borrowing" is still expensive.

I do worry about what will happen to inflation (and therefore interest rates) if they go too far with the QE programme. Interesting times ahead!

Rufus.