Thursday, Mar 05, 2009
“America has been doing something like this for several months.
Sorry Bloomberg Again: Bank of England Cuts Rates, Starts Asset Purchases (Update7)
“We’re moving into a new world in the U.K. from interest- rate adjustment to quantitative easing,” said Charles Goodhart, a former member of the central bank’s Monetary Policy Committee. “It’s a great deal more uncertain how things will be done. This month what the MPC says is going to be much more important than what they do.”
Alistair Darling told broadcasters. “America has been doing something like this for several months. You will see countries all over the world taking action to make sure there is enough money in the economy.”
The Bank of England has now reduced the key rate 4.5 percentage points since October ~~~ Credit markets in the U.K. are still frozen in spite of the Bank of England’s actions ~~ red lights flashing yet? how about the alarm bells? hear them now?
1 Comment
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1. dohousescrashinthewoods said...
Looking back to the Reuters article from a couple of days back (emphasis added):
"Quantitative easing is when policymakers create new money to buy assets, such as government bonds -- gilts in the UK -- or company assets and securities like corporate bonds or commercial paper from commercial banks that hold them."
So Gordon is now borrowing off the laserjet.
"how many pages per minute did you say it would do? I have a world to save you know."