Quantitative Easing Update - 23.04.2009

Author: Michael Aglony Posted on: 23 April 2009

Two more rounds of Gilts purchase QE this week ahead of the Budget on Wednesday.  Total Gilts purchases of £6.5Bn n Monday/Tuesday attracting tenders amounting to £18.3Bn – giving composite cover of 2.8x.

The Chancellor did not mention the words quantative easing during the course of the Budget – probably at the request of the Governor who must be desperate to maximise the distance between the Bank of England and the Government’s ballooning borrowing predictions.  So no new guidance from there!