BSA comments on further quantitative easing
Thursday, 9 February 2012
Following the decision of the MPC today to increase quantitative easing further, Adrian Coles, Director-General of the Building Societies Association, said:
"With the economy in negative growth territory, an expansion in the quantitative easing programme is a predictable response. The additional asset purchases of £50 billion announced today will inject money into the economy, but it remains to be seen whether this will stimulate demand, economic growth, and market confidence. Further quantitative easing may help to ease conditions in the mortgage market. However demand is currently subdued particularly as a result of low consumer confidence."
Hilary McVitty and Rachel Wylie
Tel: 020 7520 5926 / 5905
Email: email@example.com / firstname.lastname@example.org
1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 47 UK building societies. Mutual lenders and deposit takers have total assets of over £375 billion and, together with their subsidiaries, hold residential mortgages of over £235 billion, 19% of the total outstanding in the UK. They hold more than £250 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for 34% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
2. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Disclaimer: Press releases published on this page are from key opinion formers
who promote their organisation's activities by subscribing to a campaign site within
politics.co.uk. politics.co.uk does not endorse, edit, or attempt to balance the
opinions expressed on this page. The content of press releases are wholly the responsibility
of the originating company or organisation.
The government did not place any pressure on the Bank of England to release more money into the economy, Mervyn King has insisted.
Mervyn King has intimated that the government may have to engage in more "emergency measures" to lubricate the economy, on the day that the comprehensive spending review is announced.
Quantitative easing is all well and good, but why doesn't the government give the money straight to the British people and start a QE lottery?
Read the shadow chancellor's response to the autumn statement in full
There is no magic bullet that will make our economy boom – we know it and the chancellor knows it.
There was a minor but unexpected bit of good news this morning, as UK economic growth was revised up to 0.6%.
A second round of quantitative easing is needed to stave off a potential double-dip recession, a member of the Bank of England's monetary policy committee (MPC) has said.
Vince Cable, business secretary, points to the success of quantitative easing in the UK as a means of staving off potential economic stagnation.
The Bank of England has cut interest rates by half a percentage point to a further record low of one per cent.
There will be no increase in alcohol or tobacco duties, the chancellor announced today.