7 Oct

The BoE 'could expand quantitative easing'

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.

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