Sterling weakens as BOE indicates more QE to come
Sterling weakens as BOE indicates more QE to come
Sterling weakens as BOE indicates more QE to come
Sterling weakens as BOE indicates more QE to come
The UK economy looks to be far from out of the woods today as Mervyn King stated more asset purchases may need to be made.
The currency markets reacted badly to the news with Sterling dropping one cent against the dollar.
With the UK barley limping from its worst recession in living memory further talk of the need for more monetary stimulus is unlikely to steady the ship. Contrast this with the urgent need for a start to begin on deficit reduction and it looks set to be a difficult balancing act is required for any incoming government.
It does now seem the timing of the UK’s forthcoming general election could not be worse, with Gordon Brown unlikely to make the call until the very last possible moment.
Many eyes are now shifting to the credit agencies and the UK’s credit rating. Doubtless it is set to experience considerable stress testing as this story continues to unfold.
Tags: Sterling