No change to interest rates, no further Quantitative Easing

The Bank of England have left interest rates on hold and decided against extending the existing £325 billion program of Quantitative Easing (QE). Despite the International Monetary Fund (IMF) calling for a cut in UK interest rates the decision to leave rates at 0.5% was hardly a surprise. ‘Wait & see’ The IMF also suggested that the Bank should extend the program of QE and some observers had predicted that this advice would be followed. However it seems that the Bank has decided to adopt a ‘wait and see’, monitoring both inflation and the wider economy, before making their next move. At least one ...

Investors braced for another rocky day after Italy is downgraded

European stock markets are likely to open lower this morning and can expect a day of volatile trading after news that Italian debt was downgraded late last night by ratings agency Standard & Poor’s. It is not just European markets that are likely to be affected. Markets in the US are likely to open lower too and Asia has already closed lower, as fears grow about the level of European debt and the ability of governments to steer a safe course through the crisis. In the UK the FTSE 100 fell yesterday by just over 2%, principally because of continuing worries about ...