quantitative-easing

Veritas manager Ezra Sun looks at the impact QE2 will have on the Asian markets.

The theme of this year will be consolidation, following on from a 2010 characterised by "unnatural" government intervention in markets, according to Guy Monson, CIO and managing partner of Sarasin.

ON THE US

Q&A WITH JPM'S LUPARIA

The US Federal Reserve will push ahead with its $600bn (£385bn) stimulus programme - dubbed QE2 - as it is not convinced by improved economic data in the US, meeting notes show.

Economics research firm IHS Global Insight has revealed its predictions for the UK economy in 2011, forecasting GDP growth of 1.8% and average CPI inflation of 3.2% over the course of the year.

Sterling touched a three-month low against the dollar before rebounding as the Monetary Policy Committee (MPC) revealed continued division on interest rates while UK growth was revised down.

The UK should not set upon a further bout of quantitative easing to curb its economic problems, says F&C's Peter Lees, as inflation is already too high.

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

The US will lose its AAA credit rating in the coming years while the UK will struggle to maintain its rating, warns M&G's Jim Leaviss.