BoE puts quantitative easing on hold
The Bank of England has today (4 February) announced it is to keep the base rate at 0.5 per cent and pause quantitative easing.
Jeremy Cook, chief economist at World First, said, ‘It is time that the UK was weaned off these very expensive drugs that have kept us going for the past year. I expect, come the end of the month, an upward revision in the GDP figure will back up this decision to pause quantitative easing, alongside a recovery in retail sales, consumer confidence and the jobs market. We are not out of the woods by any stretch of the imagination but this was a very important step on the road to recovery.’
After a substantial fall in output, the UK economy recorded sluggish growth in the final quarter of 2009. Spending by households appears to have picked up a little, though that may partly reflect temporary factors.
The rate of decline in businesses' investment spending appears to have eased and the world economy continued to recover, raising the demand for UK exports.
CPI inflation has risen sharply to well above the 2 per cent target, reaching 2.9 per cent in December. That rise was largely accounted for by higher petrol price inflation and the reduction in the main VAT rate a year earlier dropping out of the calculation. Inflation is likely to have risen further in January, reflecting the restoration of the VAT rate to 17.5 per cent.
Advertisement
Latest news
F&C multi-manager duo to depart following Thames River deal 2 September 2010
F&C Asset Management has revealed that head of UK retail multi-manager Dean Cheeseman and fund manager Oliver Sonnbichler will leave the firm, following the completed acquisition of Thames River Capital.
- BlackRock to rename and alter High Income Bond Fund 2 September 2010
- BlackRock to close Japan fund 2 September 2010
- Gartmore's head of small caps resigns 1 September 2010
Recommendations
Top Ten Life Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| UBS Life Structured Credit A | 94.15 | 174.5 | n/a | n/a |
| Skandia Finland FIM Russia | 11.29 | 60.6 | -2.7 | 48.5 |
| Skandia Finland Alfred Berg Ryssland | 0.86 | 49.5 | -18.0 | n/a |
| Skandia Finland BlackRock Gold & General | 2.57 | 45.6 | 41.3 | 150.3 |
| Zurich American Property AL G4 | 43.30 | 44.7 | 20.9 | 39.3 |
| Skandia Norway Alfred Berg Ryssland | 0.87 | 41.2 | -16.8 | n/a |
| Aviva Investec Global Gold S4 | 0.00 | 41.0 | n/a | n/a |
| Skandia Finland JPM New European | 2.07 | 40.7 | -13.2 | 44.6 |
| Skandia Finland First State Greater China Growth | 1.35 | 40.0 | n/a | n/a |
| Skandia Finland Neptune Russia & Greater Russia | 1.49 | 39.8 | n/a | n/a |
Investment funds in depth
Structured range in development at Barclays 2 September 2010
Barclays Wealth is planning to launch a new range of structured products in the coming weeks, What Investment has learnt.
- Charges revealed for Neptune Africa launch 31 August 2010
- Edinburgh Partners dismisses double dip doomsters 19 August 2010
- Coventry witnesses savings rush 18 August 2010
Guides
Asset monitor: UK equities 29 June 2010
With investors reassessing their portfolios in light of fluctuating economic conditions, Joe McGrath asks the experts how they are riding the choppy markets. [Premium content]
- We voted for change, and change is what we’ve got 25 May 2010
- Investment Trusts: Corporate governance 15 April 2010
- Regular vs lump sum investing 1 April 2010
Special Offers
- Annual report service
Free access to annual reports and other information
on selected companies



