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Jason

Bank Of England Holds Interest Rates - 0.5% June09

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http://www.bankofengland.co.uk/monetarypol...decisions09.htm

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with its programme of asset purchases totalling £125 billion financed by the issuance of central bank reserves.

The Committee expects that the announced programme will take another two months to complete. The scale of the programme will be kept under review.

The minutes of the meeting will be published at 9.30am on Wednesday 17 June.

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The continuation of QE will go down as a collosal error of judgement like the August 05 cut - a deeply divisive move to prop up the housing market at the expense of ... well just about everything else.

that's because that's ALL the UK has now.

so, printy, printy it is then.....

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that's because that's ALL the UK has now.

so, printy, printy it is then.....

This will create an overshoot affect if they do not pull the plug on it soon. We all know what happenes when they realise this ....sorry, let me rephrase that...when they come out and say it was difficult to calculate exactly how much QE was needed and the resulting inflation will be brought under control (knowing fine well what was going to happen all along)

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This will create an overshoot affect if they do not pull the plug on it soon. We all know what happenes when they realise this ....sorry, let me rephrase that...when they come out and say it was difficult to calculate exactly how much QE was needed and the resulting inflation will be brought under control (knowing fine well what was going to happen all along)

IF they did stop printing (like dazedandconfused is suggesting), I wonder how much inflation we would feel from the current printy printy ?

the only thing that would have stopped QE would have been regime change. Labour won't go for another year so why would they change their current US driven policy ?

(there won't be a GE, not yet imo as the tory's don't want the UK yet, maybe next year when the depression is in full swing & the rest of the crap is out)

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I want to see what happens when the QE money has run out.

That's the magic of printing your own money - it never runs out!

All of the 'recovery' we are now seeing in equities and commodities (and the apparent halting of the HPC) is down to large amounts of money being chucked into the economy and interest rates being kept unfeasibly low.

Those in power know that the moment they stop the money printing, it all goes South at an alarming rate.

Hence they will keep printing.

Hence we will get nasty inflation and sooner than you might think. Maybe even hyperinflation eventually.

More and more of the plates are starting to wobble but that won't stop them trying to keep them spinning......

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