The Bank of England are becoming addicts - they just keep injecting and injecting. Latest? £50bn more and extension of overall spending from £75bn to £125bn. They have to use this method of quantitative easing as it is virtually impossible for them to cut interest rates to any lower than the 0.5% they are at now. This follows the announcement earlier this week that the European Central Bank is cutting its interest rates from 1.25% to just 1%. The scheme of quantitative easing has come under a lot of attack in the UK since its introduction late last year, the most common criticism being that it is essentially 'printing money'.
A sign that the recession has really hit? Lorry numbers are in decline peoples! They fell 12% in the first quarter of this year. Although people like myself to find this headline tres amusant it is still kinda serious, showing that the industrial sector at least is in major decline.
A sign that the recession is getting better?! The service industry is on the up. So are these macro or micro changes? Up or down? Good or bad? Services or industry? Does this even make a difference?! no, really I need to know i have an economics exam in two weeks....
....and now I'm more confused than ever!
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