GBP Quantitive Easing: Be or not to be?

Tomorrow MPC decide if they are gonna carry on with their QE programme. The originial objectvie was given as:

“The objective of this policy is to boost money supply in the economy, ease conditions in corporate credit markets and ultimately, to raise growth rate of nominal demand and keep inflation on track to meet the inflation target in the medium term.”

On the balance according to the Lloyds “only one of the aims of QE identified by the MPC in the MAY 2009 inflation Report seems to have improved, corporate credit quality.” So let’s say out of four aims one and a half 🙂 were accomplished. We will see how it develops. The general consensus is that QE will be put on hold.

We will see tomorrow.