Why the UK needs another £400bn of QE: Ignis' Bowie

Ignis head of credit portfolio management Chris Bowie explains his defensive positioning on expectations of a further $2trn of US and £400bn of UK quantitative easing.

A second, larger, round of quantitative easing is now inevitable, in the face of the refusal of the US economy to show any sign of sustained recovery. Unless unemployment and other core measures of confidence begin to make continual improvement, (notwithstanding the recent better-than-expected employment numbers), we believe that the US authorities, led by arch-monetarist Ben Bernanke, will once again begin printing money to buy financial assets. The latest soundings suggest this will happen over an extended period of time. The Bank of England will then follow suit. The scale is li...