Corporate foreign exchange news

Quantitative easing calls could affect business exchange rates

Friday, 23 September 2011 09:10:05 GMT

Published by Jamie Jemmeson
Business exchange rates may be affected by calls for a fresh round of quantitative easing to be introduced.
According to former director general of the Confederation of British Industry Sir Richard Lambert, speaking at the BCSC Conference and Exhibition 2011, such a move is unlikely to cause an "inflationary threat".
"We know that the last time we did quantitative easing, the price of risky assets went up. We know that it helped to push the economy forward, so I think let's give it another shot," he said.
Mr Lambert added he expects the government to introduce a fresh round of "growth initiatives" in the near future but suggested these are unlikely to have a great impact on the economy.
His comments follow the release of the minutes from the Bank of England's Monetary Policy Committee policy committee meeting, which took place earlier this month, on Wednesday (September 21st).
It indicated that an expansion of asset purchases is likely to be seen at some stage.
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