PRN: Traders Turn to Market Analysis in Wake of Second Quantitative Easing Announcement
Traders Turn to Market Analysis in Wake of Second Quantitative Easing Announcement
LONDON, October 7, 2011 /PRNewswire/ --
On 6th October the Bank of England announced a second phase of quantitative easing. So what does the new phase mean for traders?
Starting QE2 typically creates upward pressure on inflation and so the move is a risky one, said Raymond. "Though certainly with the MPC expecting inflation to hit 5%, but then falling back below the 2% target in the medium term, this forecast has certainly freed their hands somewhat."
"The impact of today's measures saw an immediate fall in value of the pound against a basket of currencies. The pound fell 1% against the US dollar on the back of the announcement before recovering some of its losses into the evening."
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