BoE policymakers 'may opt for more QE'

7 June 2012

Policymakers at the Bank of England (BoE) may decide to implement further monetary stimulus today (7 June) to help the UK's ailing economy.

The central institution's Monetary Policy Committee (MPC) is scheduled to hold its monthly meeting to discuss interest rates and its asset purchasing budget later this morning.

And many experts believe this summit may result in the introduction of more quantitative easing (QE) as the country's financial situation continues to deteriorate.

For instance, the Office for National Statistics recently revealed that the nation experienced gross domestic product contraction of 0.3 per cent in the first quarter of 2012.

Meanwhile, the country's manufacturing industry has also shrunk in recent times and Deutsche Bank economist George Buckley believes such factors could make stimulus necessary.

"Up until now we had been arguing the Bank would sanction no more QE after ending the previous programme last month. But conditions have worsened," he noted.

By Gary Cooper

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