British economy still needs help

20 Feb

Vote to preserve assets at 375 billion pounds: 6 for, 3 against

UK central bank governor has made no secret of his desire to reopen the printing press last week. His opinion was actually translated into action at the recent meeting on monetary policy issues. Minutes released Wednesday showed three votes to restart the printing press, among which that of Mervyn King, bringing another 25 billion pounds in sistem.Discussions where focused on interest cut  or a form of monetary stimulus more focused than QE injection . A surprise that withdrew the fragile support that pound had against the dollar. By installing the new governor, King seems to have time to argue for another round of QE, while inflation seems a problem that haad been moved to the edge of the radar.

Unemployment rises to 7.8%, but other news from the labor market are better: with 12,000 fewer applications for financial support. Resistance in this segment needs to leave a clear trend of improvement before allowing monetary policy changes. Markets seem to understand this, the pound has lost almost 1% against the dollar after the publication of relevant information.



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