I am not sure which is more hapless and hopeless, the ECB or the Bank of England. It is a close run thing and today’s actions by the pair did nothing to clarify the situation.
The Bank of England announced £50 billion more Quantitative Easing. Ok, so QE has not worked to date so let’s try it again but only a small dose. If you think that QE is the answer to the UK’s ills (and for what it is worth I do not) then force the patient to drink gallons of medicine. The strategy seems to be a big gulp, then another big gulp and because that has not worked another sip or two. This latest QE will be regarded as either: another dollop of the wrong medicine (by sceptics like myself) or too little medicine to make a change and thus a counterproductive confidence destroyer (that is the “believer’s view). Either way this is another day in which the Old lady of Threadneedle Street achieves nothing much.Comments