Intraday Market Thoughts

Archived IMT (2010.10.17)

by Ashraf Laidi
Oct 17, 2010 21:33

The London-based Centre for Economics and Business Research (CEBR) predicts the Bank of England will increase its emergency bond-purchase plan (QE2) by GBP 100 billion ($160 billion) to stimulate the economy as the government cuts spending. Interest rates will remain at 0.5% until at least late 2012). Weve already heard reports about the UK Treasury looking into postponing some of its plans to cut spending. In fact, the IMF is suggesting these spending cuts should be reconsidered if they risked driving UK growth back into recession. Here is my video from September 3rd explaining why any QE2 from the Fed will drive the BoE into the doing the same, with a chart on the similarity of BoE/Fed interest rate differentials in 4:15 mins VIDEO LINK:


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