Friday, March 06, 2009

Where No Man Has Gone Before

The Bank of England had a "Star Trek" moment yesterday, as it lowered interest rates to 0.5% (the lowest in the UK's history) and committed to pump in £75BN into the UK economy over the next 3 months via quantitative easing (printing money).

Quantitative easing has never been attempted in the UK, when the Japanese tried it in the 1990's it had little success.

As to whether these policy measures will work is anyone's guess, we are entering uncharted territory and going where no man (UK central banker) has gone before.

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