Corporate foreign exchange news
Forex trading news: Darling hints at QE extension
Friday, 23 October 2009 09:10:42 GMT

Chancellor Alistair Darling has defended the case for an extension of the quantitative easing programme and a widening of other fiscal stimulus measures.According to the Financial Times, Mr Darling told a City audience that it would be better to roll back quantitative easing "rather too late than rather too soon".His comments come ahead of the chancellor's pre-Budget report, which will be delivered in November or December. Many analysts expect that Mr Darling will use the report to push through further government fiscal support.Mr Darling used last year's pre-Budget report to cut the VAT rate to 15 per cent and fast-track capital spending programmes to promote global stability.Meanwhile, analysts have also this week looked to the minutes of the October Monetary Policy Committee meeting for the group's assessment of the health of the UK economy.While the committee was unanimous in its decision maintaining quantitative easing at £150 billion and keeping interest rates on hold, there was less harmony in weighting the effects that policy interventions have had on the economy.

