More QE in US and UK 'inevitable' - Ignis' Thomson

Ignis' chief economist Stuart Thomson believes more quantitative easing in the US and UK is inevitable in 2011.

Thomson says the US is likely to embark on a third round of QE in the summer to stimulate growth. "Next year will undoubtedly bring more stress and distressed debt for the European peripheral economies. "US Fed stimulus from its second quantitative easing programme will help global growth during the first half of the year, but this will encourage developing economies to tighten policy, particularly China," he says. "We do not believe the major industrialised economies have achieved escape velocity and the summer will bring a marked slowdown in growth, forcing the Fed to provide a ...