BoE Side-steps Further QE

The Bank of England has decided not to extend its quantitative easing (QE) stimulus programme, which has injected £375bn into the UK financial system.

It is also keeping its key interest rate unchanged at 0.5%, where it has been since March 2009.

Under QE, the Bank creates money and uses it to buy government bonds to try to stimulate the economy.

It has previously warned economic output could contract for the last three months of 2012.

That would raise the prospect of a triple-dip recession.

Official figures for fourth quarter gross domestic product (GDP) are due to be released on 25 January.

BBC World News

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Dean Popplewell

Dean Popplewell

Director of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell