7
Oct
The BoE 'could expand quantitative easing'
Team Association customers might be interested
to learn that one property expert has suggested that the Bank of
England (BoE) could look to expand quantitative easing.
Benjamin Williamson, economist at independent consultancy the
Centre for Economic and Business Research, said that this is an
option for the institution in light of the scheduled publication of
the inflation report in November.
This is despite the release of the Confederation of British
Industry's forecasts, which claimed that interest rates will reach
two per cent by the end of next year.
"We don't see base rates lifting from 0.5 [per cent] in 2010;
partly to counteract the expected sharp fiscal contraction, but
also because the recovery does remain weak, so they have got to
keep borrowing costs down," stated Mr Williamson.
This news comes after the Young Group recently revealed that
residential property investors predict that the base rate will
increase slightly in 2010 to just over one per cent.
