Friday, October 23, 2009
All change after the election
The Bank of England today said it is ready to reverse quantitative easing as the housing market showed further signs of recovery. Policymakers on Threadneedle Street said the Bank will have to withdraw the Â£175 billion of freshly printed money it has pumped into the economy, but only when the time is right. Adam Posen, a member of the monetary policy committee, said: "In the medium term, meaning more than six months out, there's no question that we're going to have to reverse the extreme policy measures that we took. The reason for being very cautious is because there are high stakes involved. It's not because things are that knife-edge or that uncertain but it's that you don't want to make a big mistake. So we on the MPC are being very cautious."