Industry professionals think that quantitative easing will work

According to a number of industry experts the quantitative easing programme that the government has brought in to try and get the economy back on its feet will work. This month the Bank of England decided to keep rates on hold following the April Monetary Policy Committee meeting in favour of ploughing money into the economy through quantitative easing.

A recent poll was carried out amongst a number of economists, and the general consensus was that the government was on track by using quantitative easing and trying to plough billions into the economy this way. The economists also said that this would help to bring the nation out of the recession it is currently experiencing.

Around 38 of the 50 economists polled said that plan sounded fine, and that it should work. One economist stated: “Ultimately, we feel that QE will be effective. That is because we believe that the BoE will conduct QE, issuing more central bank money, until it becomes effective.”

Economists also predicted that the Bank of England would now keep interest rates on hold at 0.5 percent until around the middle of next year, with one stating: “Official rates are about as low as they can go. No further monetary policy action looks to be on the cards for a while longer.”