quantitative-easing

UK gilts extended declines as the Bank of England refused to buy bonds maturing in 2017 in Monday's auction, after traders aggressively drove up prices.

Bank of England governor Mervyn King has described the current financial crisis as the "most serious" the UK has seen for at least 80 years.

George Osborne is set to face tough questions today about the coalition government's economic strategy after the Bank of England expanded quantitative easing by £75bn, a move he has previously called "the last resort of desperate governments".

The Bank of England's (BoE) second round of quantitative easing (QE) will be a "Titanic disaster" for pension schemes and members, Saga says.

Invesco's John Greenwood has warned further QE in the UK is unlikely to lead to a rebound in economic growth as he said there was "no quick fix" to the country's economic woes.

The Bank of England has increased its quantitative easing programme by a more than expected £75bn in a bid to kick-start the UK's ailing economy, while leaving interest rates on hold at 0.5%.

The Federal Reserve's latest cunning plan seems to have been misinterpreted by many, but not by Mr Market. This is less of a money-printing exercise, á la QE1 and QE2, than an attempt to flatten the yield curve.

ON UK GROWTH

Investors have accused the Federal Reserve of ‘fiddling while Rome burns' after its latest attempt to support the US economy was followed by a brutal market sell-off.

F&C's Ted Scott has called on the Monetary Policy Committee (MPC) to abandon plans for QE2 and buoy the economy using fiscal measures.