View more on these topics

Bank of England unsure of easing success

The Bank of England’s latest Monetary Policy Committee minutes have revealed its uncertainty around the success of the quantitative easing strategy.

The MPC says M4, or broad money growth had continued to fall in April in opposition the growth of M4 in the non-bank financial corporations’ money balances.

The Bank had acquired just less than £80bn of assets so far, and will buy a further £45bn over the coming months target for purchases. It hopes the money will move from financial institutions into the banks, which will then trickle through to borrowers.

The MPC says there is “tentative evidence that the asset purchase programme was succeeding in boosting the money holdings of institutional investors, a first stage in the transmission mechanism from asset purchases through to the economy

“But as yet there had been no rise in private non-financial companies’ holdings of money.”

Henderson New Star chief economist Simon Ward predicts further quantitative easing is likely to be required to prevent inflation from undershooting the target over the medium term.

He says:
”This suggests that the odds slightly favour the MPC expanding asset purchases to the £150bn current maximum at its July meeting, while simultaneously seeking Treasury authority for a higher limit. However, the Committee could yet choose to suspend the strategy at £125bn if forthcoming business surveys and monetary data show further improvement.”



Passing the buck?

The Adam Smith Institute has slammed the FSA’s response to the financial crisis, saying its failure to recognise the extent of its own failings compromises its ability to improve regulation.

Bramdean Alternatives terminate Petersfield takeover talks

The board of the Bramdean Alternatives fund has terminated takeover talks with Petersfield Asset Management, a company owned by Nicola Horlick.In an announcement to the London Stock Exchange, the board of Bramdean Alternatives said Petersfield has not withdrawn the approach it made on April 30, which means the company effectively remains in an offer period.There […]

Directors, limited liability partners and auto-enrolment

By Jim Grant, Senior Product Insight & Technical Support Analyst 6 April 2016 brought in changes to employer duties for directors and partners in limited liability partnerships. Here we explain exactly what’s changed. Before 6 April 2016… Directors of limited liability companies where there were no other directors or employees were exempt from the employer […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm