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Article: Will MPC gamble its last pounds 25bn to boost economy? The Bank of England looks likely to keep interest rates at 0.5% this week, but faces a difficult decision over its quantitative easing programme, writes economist Howard Archer.
- Article from:
- Western Mail (Cardiff, Wales)
- Article date:
- August 5, 2009
CopyrightCOPYRIGHT 2009 MGN Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Howard Archer
THE likely outcome of the two-day meeting of the Bank of England's Monetary Policy Committee (MPC), which begins today, is extremely easy to call on one hand and very difficult to call on the other.
The easy call is that the MPC will keep interest rates at their record low level of 0.5%. Indeed, we strongly suspect that interest rates will stay down at 0.5% deep into 2010.
The difficult call is what will the MPC decide to do on quantitative easing (QE)? We lean towards the view that the MPC will choose to use the final pounds ...