KPMG: QE to resume “sooner rather than later”

by Richard Crump

More from this author

11 May 2012

  • Comments
Bank of England

THE BANK OF ENGLAND Monetary Policy Committee has maintained interest rates at a record low of 0.5% and is not extending its quantitative easing policy.

In March, inflation rose to 3.5% from 3.4% in February and has been running above the Bank's target rate of 2%.

"This was no great surprise - after all with conflicting evidence, the wisest course of action is often to do nothing. The Committee faced a tough dilemma with GDP coming in weaker than expected and inflation higher," said KPMG chief economist, Andrew Smith.

The MPC decided to not to extend its £325bn asset purchase programme announced in February, but with the economy back in recession Smith expects the Bank will have to extend the programme.

"QE is no silver bullet, but the probability of continued weak growth (at best) and the expectation that inflation will resume its downward trend again shortly, is likely to lead the Committee to conclude that more stimulus is worth a shot, and sooner rather than later," said Smith.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.