Economics - Quantitative-easing concerns

News

p7-wood-jpg

Moves by the UK government to increase liquidity in the UK economy through the Bank of England (BoE) acquiring gilts and high-grade corporate bonds - quantitative easing - could miss their target because the majority of these assets are held by buy-and-hold investors such as insurers and pension funds, according to a senior figure in the UK insurance sector.

On 5 March the BoE announced that despite slashing interest rates to an all-time low of 0.5% it was in danger of undershooting the long-ter