Stimulus debate awaits policy makers with English central bank

Posted On: April 06, 2012
Officials with the central bank of England next month will decide whether they will continue with additional stimulus, according to Bloomberg.

Following a Thursday vote that endorsed rounding out the current intervention, policy makers with the Bank of England also might opt to discontinue the stimulus program. The present round, worth the equivalent of $516 billion in English pounds, will close, per the votes of the nine policy makers.

"Attention now turns to the May meeting, which is certainly a live one," chief U.K. economist David Tinsley with BNP Paribas in London, also previously an official with the Bank of England, told Bloomberg. "The committee may not feel particularly moved to change its view that the risks around the inflation target are 'broadly balanced.' Still, it remains a close call."

The sovereign debt crisis is adding additional tension that is augmented by pinching applied by George Osborne, Chancellor of the Exchequer. But the value of the English pound remained low against the U.S. dollar following the Thursday development.

Mervyn King, governor of the central bank of England, repeatedly has warned that resuming fiscal and economic health will not be easy and will require significant effort, according to Today online.

Category: Industry News

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