More QE to come this year? Industry reacts to £100bn expansion

Dissenting voice on QE raises questions

The Bank of England's Monetary Policy Committee (MPC) announcement that there would be no change to rates but a quantitative easing (QE) increase of £100bn to a total bond purchase target of £745bn came as "no surprise" to the industry, according to some commentators, although others warn more "unconventional" monetary policy could be round the corner.

Neil Birrell, CIO at Premier Miton, said: "There is nothing in this for the markets to react to, but the increase in the bond purchases shows that central banks will keep going to the well to support the financial system and as the BoE says, it is ready to take further action." Bank of England holds rates at 0.1%; warns of 'sharp' UK downturn This increase is unlikely to be "the last time that the Bank ramps up QE this year", according to Richard Carter, head of fixed interest research at Quilter Cheviot, who pointed to a "recovery likely to be hampered by the ongoing need for social ...