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."
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.ukMore Articles by Building Societies Association (BSA) ...