Sunday, October 17, 2010

Bank of England to Join Money Printing Parade

The Bank of England will increase its emergency bond-purchase plan by 100 billion pounds ($160 billion), the Centre for Economics and Business Research said, according to Bloomberg.

The BOE will also keep its benchmark interest rate at a record low of 0.5 percent until at least “late” 2012, the respected (and tied-in) London-based group said in an e-mailed statement today. The bank kept its stimulus plan at 200 billion pounds this month.

Thus, a 100 billion increase will put the annual increase at 300 billion, an increase of roughly 20% relative to England's M4 which stands at roughly 1,570 billion pounds.

This all signals that the inflation ahead will be pretty much global.

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