QE2

[AtW]

Mervyn King hints at fresh round of quantitative easing

Bank of England governor says strong case for pumping money into economy to spur growth and stop inflation falling below 2% (AtW's comment: oh FFS, what 2% inflation when fuel is like £1.20 per liter, ffs - easily 100% up in 5-7 years!)

Bank of England governor Mervyn King signalled tonight that he was closer to embarking on a second round of quantitative easing after he said there was a strong case for pumping funds into the economy to spur growth and prevent inflation falling below its 2% target.

King warned the next decade would be bumpy and the UK would struggle to claw back the 10% of output it lost following the banking crash.

A lower exchange rate is expected to support a rise in exports and help rebalance the economy towards investment and exports.

King famously described the 10 years after the mid-1990s as the "nice" decade – an acronym for non-inflationary, consistently expansionary.

More from the source: Mervyn King hints at fresh round of quantitative easing | Business | guardian.co.uk

[d000hg]

Have the Tories expressed their opinion on the previous QE, and plans in future - are they happy for the BOE to go off in their own direction or do they want greater government control?

[AtW]

Tories are happy for "independent" Bank of England to continue printing money - later Tories can wash their hands and say it was "independent" and (probably) Governor was incompetent but they could not do anything about it since BoE was "independent".