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SarahBell

Rates Hold And No Qe

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Does the BoE decide on printing money?...sounds like a pretty powerful weapon they have control of.

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Does the BoE decide on printing money?...sounds like a pretty powerful weapon they have control of.

QE== Creating New digital money. Most money is virtual money, the demand for paper or coin money is low, but they create as much physical as is needed which isnt much as most is digital. QE is printing digital money and giving it to the banks. Yes the BOE/Treasury have control of QE and printing of physical money. THE Boe couldn't print real money in a large enough quantity to have much of an effect, which is why they do QE (which is much more efficient), if people want to convert there QE into real money then they only need print a smaller amount of money as the uk population prefers virtual money

Edited by AteMoose

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Does the BoE decide on printing money?...sounds like a pretty powerful weapon they have control of.

Decide to shovel out a hole - fill it with paper and cover it up again. Then go for some tea and some bacon butties.

Sounds like work for an Irishman.

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QE== Creating New digital money. Most money is virtual money, the demand for paper or coin money is low, but they create as much physical as is needed which isnt much as most is digital. QE is printing digital money and giving it to the banks. Yes the BOE/Treasury have control of QE and printing of physical money. THE Boe couldn't print real money in a large enough quantity to have much of an effect, which is why they do QE (which is much more efficient), if people want to convert there QE into real money then they only need print a smaller amount of money as the uk population prefers virtual money

a paper token is much the same as a digital one.....its the balance on hand that matters, unlike bank credit.

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http://news.bbc.co.u...ss/10553235.stm

The Bank of England has kept UK interest rates on hold at a record low of 0.5% for the 16th consecutive month.

The Bank's Monetary Policy Committee (MPC) also decided not to inject any more money into the economy under its policy of quantitative easing (QE).

Just heard on Radio 4's World at One that it's no change to their policy of injecting money. Does this mean QE is going on or no money being injected?

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Just heard on Radio 4's World at One that it's no change to their policy of injecting money. Does this mean QE is going on or no money being injected?

Wording of press release from BoE website http://www.bankofengland.co.uk/publications/news/2010/057.htm

News Release

Bank of England Maintains Bank Rate at 0.5% and the Size of the Asset Purchase Programme at £200 billion

8 July 2010

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 maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The minutes of the meeting will be published at 9.30am on Wednesday 21 July.

Notes to Editors

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.

Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm.

The Bank will continue to offer to purchase high-quality private sector assets on behalf of the Treasury and financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009.

Does the first bit I've put in bold mean they won't be injecting any more money? But if so, what does the second bit I've put in bold, the bit at the end, mean?

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Wording of press release from BoE website http://www.bankofeng...ws/2010/057.htm

Does the first bit I've put in bold mean they won't be injecting any more money? But if so, what does the second bit I've put in bold, the bit at the end, mean?

the second one means that the treasury wont buy private sector assets ( bonds I assume), but the BoE will, financed by the issue of government bonds....not the purchase of government bonds as per the £200bn.

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They'll have to raise or they'll be subject of cuts. Replace them with wax life size models?

Or maybe Ernie can set rates in between picking premium bond winners?

Edited by Ash4781

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Wording of press release from BoE website http://www.bankofengland.co.uk/publications/news/2010/057.htm

Does the first bit I've put in bold mean they won't be injecting any more money? But if so, what does the second bit I've put in bold, the bit at the end, mean?

I doubt that anyone at the BoE reallyactuallyhonestly knows what it means.

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Just heard on Radio 4's World at One that it's no change to their policy of injecting money. Does this mean QE is going on or no money being injected?

The Bank stopped QE some months ago and it is staying stopped. To put it another way, they have not increased the supply of money in the economy for several months and will continue this policy.

They could put it up again at some point, but more likely they'll start withdrawing the money from the economy. Probably not this year though.

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the second one means that the treasury wont buy private sector assets ( bonds I assume), but the BoE will, financed by the issue of government bonds....not the purchase of government bonds as per the £200bn.

Errh? I don't understand. Could you amplify your explanation please?

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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