Investec's Shaw: BoE to unveil £25bn more QE this week

Philip Shaw, Investec's chief economist, expects the Bank of England to extend its quantitative easing programme on Thursday, arguing more liquidity needs to be pumped into economy to drag the UK out of recession.

Speaking to the Telegraph, Shaw said although the MPC is becoming increasingly concerned over ‘sticky inflation', with the consumer prices index (CPI) creeping up to 3.6% last month, greater emphasis will be placed on reversing the UK's first double-dip recession since 1975. The economist predicts the BoE will inject an additional £25bn into its current quantitative easing programme, taking total bond purchases to £350bn since the first introducing the measure in March 2009. "While we recognise the outcome of the meeting is one of the most uncertain for some time, our central expectat...