Thursday, June 4, 2009
Newly minted Bank of England cash is going abroad
FT's take on yesterday's Daily Mail story. "Up to half of the fresh cash being minted by the Bank of England is flooding abroad, official figures suggested yesterday." Foreigners are making use of QE to get rid of their UK Gilts. This is confirmed by a drop in lending by UK banks; depressing chart for BoE. "So inevitably, people will be asking whether QE is effective."