BoE split on further Easings
Wednesday started witch a new investment plan, made by the British Government in order to give additional momentum to the economy. The government said it would underwrite £50 billion of investment in exports and infrastructure, following the decision by the IMF to cut its growth forecasts to just 0.2% for the UK economy on Monday.
We also learned that the £50billion boosts to be given by the BoE (British Bank of England) to the UK economy was not a unanimous decision. The Bank’s Monetary Policy Committee votes 7 -2 for the expansion of the central bank’s asset purchase programme, Quantitative Easing. The two members against it believed that money supply will be sufficiently boosted by recent schemes, and were also concerned about the effects on inflation further down the line.
Good news for Britain’s labour market, the number of British people looking for work has fallen by 65 000 to 2.85 million in the three months to May, according to the Office for National Statistics. The UK unemployment rate fell to 8.1% in the period down from 8.3% in the previous quarter, hitting a nine-month low since last summer.
Markets were broadly higher with the UK slightly underperforming Europe.
This was posted in Bdaily's Members' News section by James .