SUBSCRIBE TO FEEDSterling continues to tank against the dollar in forex trading
The British economy may require more quantitative easing, according to some policymakers. While it is far from a foregone conclusion, the Bank of England is leaving the door open to further stimulus measures, according to member Posen.
GFT’s Kathy Lien reports in FX360 on the possibility of quantitative easing in Britain:
Given that one of the central bank’s mandates is to keep inflation within target, the lack of inflationary pressures confirms that from a price perspective, there is no pressure to reduce stimulus. He also said a potential output drop is a big concern and because they do not know exactly how the economy will progress, they have to leave the door open on more Quantitative Easing.
Like the U.S. economy, the British economy is not yet out of the woods. The sterling is having difficulty in forex trading as the British economy struggles, and as debt mounts. Britain doesn’t want to end up like Greece, and investors are concerned about the current state of things.
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