Bank Of England MPC - Interest Rates CUT to 0.25% + QE increase £60 Billion

worldtraveller

The Bank Of England MPC have voted today to cut interest rates to 0.25%.

Also QE programme increased by £60 billion.

lee111s

Just what you want to hear when last week reserved a tracker product

Dan:_4

Happy days.

worldtraveller

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment.

At its meeting ending 3 August 2016, the MPC voted for a package of measures designed to provide additional support to growth and to achieve a sustainable return of inflation to the target.

This package comprises: a 25 basis point cut in Bank Rate to 0.25%; a new Term Funding Scheme to reinforce the pass-through of the cut in Bank Rate; the purchase of up to £10 billion of UK corporate bonds; and an expansion of the asset purchase scheme for UK government bonds of £60 billion, taking the total stock of these asset purchases to £435 billion. The last three elements will be financed by the issuance of central bank reserves.

Bank Of England

Graham_Devon

I must admit, I do question what they feel doing more of the same is going to achieve.

And seems I'm not the only one questioning this listening to 5live this morning. Seems almost everyone, bar the BOE and those involved in housing seem to be questioning what this will actually achieve.

The head of a BTL services company was almost praying for the cut this morning suggesting it will be a real driver in the BTL scene and fantastic for BTL sentiment as many in the game have been fearing interest rate increases. I'm sure more BTL will sort out the countries issues....

Crashy_Time

Graham_Devon wrote: »

I must admit, I do question what they feel doing more of the same is going to achieve.

And seems I'm not the only one questioning this listening to 5live this morning. Seems almost everyone, bar the BOE and those involved in housing seem to be questioning what this will actually achieve.

Bloomberg commentators saying "wrong decision" and "pushing on a string" :rotfl: Really fascinating watching them lose control TBH.

stator

They really only have two levers to pull.
When falling off a cliff it's quite instinctive to pull any levers you can, even if you know they don't work.

wotsthat

Crashy_Time wrote: »

Bloomberg commentators saying "wrong decision" and "pushing on a string" :rotfl: Really fascinating watching them lose control TBH.

Have you read the comments from the HPC crew? I think they need counselling.

cells

Graham_Devon wrote: »

I'm sure more BTL will sort out the countries issues....

Whats the big evil in having 20% of the housing market as rentals?

Is it reasonable to expect 0%? What is the percentage that seems reasonable to you to maximize economic and social benefits?

iantojones40

Great news!

Another big step in the direction towards total economic collapse.

Filo25

Hard to see what else they could have done, economic sentiment has turned extremely negative.

While I agree that loosening fiscal policy would probably be more effective at this stage than further monetary easing, there isn't much the bank can do about that, given that the government seems to have decided to sit on its hands until at least the Autumn statement.