Business News–“Mann International”– (Pound Printing To Continue ?)...
(NewDesignWorld Press Release Center) -- August 4, 2009, New York, USA- “Mann International” believes the BoE may be forced to expand its quantitative easing policy.
“Mann International” the Asian-based investment broker apparently believes that the UK’s slow response to the additional injection of liquidity afforded by the quantitative easing policies of the Bank of England may force the central bank to buy more gilts (UK treasury bonds) and commercial paper.
Quantitative easing is a euphemism for printing money – a policy widely acknowledged by analysts at “Mann International” and most others as dangerously inflationary.
The British Chamber of Commerce said that quantitative easing had not yet proved effective on the UK economy and has called for the policy to be expanded by a significant margin. Some commentators have suggested figures as high as £300 billion but it is unlikely the Monetary Policy Committee – the appointed body responsible for setting UK interest rates – would go this far.
“Mann International” believes that although there has been some stronger economic data, the fact remains that unemployment is rising and interest rates will have to rise sooner than most expect. The firm also believes that any extension of QE will be detrimental to the value of sterling.
The UK’s bailout of its banking sector is set to cost over £1 trillion and “Mann International” believes that the FSA’s refusal to release the results of the stress tests conducted on Lloyds Banking Group and RBS may hint at a deeper malaise.
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