The Times MPC: The July Verdict

halight

http://business.timesonline.co.uk/tol/business/economics/article6669853.ece

purch

I thought this comment by Rupert Pennant-Rea, former Deputy Governor of the Bank of England just about sums up QE currently !!!!


"On quantitative easing, I suspect the Bank has lost its way. It has purchased over £100 billion of securities of which 97 per cent seem to be gilts and at least a third of the gilts have been purchased from overseas investors. It is not clear how this is meant to help the UK economy. Unfortunately this seems unclear to the Bank too. At the outset the Bank said QE was intended to unblock the credit markets; there is no sign that it has. More recently they have said that it is about increasing the money supply; but broad money grew more slowly in May than in April. They have also offered the view that it works by putting downward pressure on the exchange rate; but is there evidence that the present rate is a problem?

If the Bank does not know what it is doing, it should stop doing it"

halight

The BOE should i think only be buying guits and other paper assets from UK companys banks.
What the point in printing money just to seed it abroud so other GOvs benafit from it and not us.

mbga9pgf

They are doing it, I believe on purpose... Merv doesnt believe in moral hazard, alll buying gilts of foreign nations does is reduce external debt at very little cost to inflation in this country. Anyone see the telegraph's cynical take on the matter? QE scheme to be increased with an article right next to it 'brown to increase BOE powers'

read of it what you will!

halight

mbga9pgf wrote: »

They are doing it, I believe on purpose... Merv doesnt believe in moral hazard, alll buying gilts of foreign nations does is reduce external debt at very little cost to inflation in this country. Anyone see the telegraph's cynical take on the matter? QE scheme to be increased with an article right next to it 'brown to increase BOE powers'

read of it what you will!

When you look at it like this that we are paying down some of our debt by buying gilts off forgign countrys. Then ys i can see the piont in doing that. It just goes to show that there is always another way at looking at something.