Thursday, 9 June 2011
Bank of England do nothing on UK interest rates
- The light of the end of US QE which will knock US inidices by at least 10%.
- The light of UK recovery number suggesting the 'recovery' has subsided.
- The light of the Euro debt crisis from which we are just a smidgen away from being embroiled in.
- The light of the boss of State owned Lloyds noting that his bank is still borked and needs continued life support.
There are no easy answers to any of this, but current policy of doing nothing has seen a retrenchment in UK prospects in 2011 - raising rates or more QE maybe the answer - doing nothing is fiddling whilst Rome burns.