Expectations are divided on BoE bond purchases

03/7/2013 | Reuters

Money markets suggest a nearly 50% chance of more quantitative easing and bond purchases from the Bank of England. Economists say further easing would do little good. "More QE would only provide marginal benefits for the economy, while heightening longer-term risks of financial distortions, bubbles and higher inflation," British Chambers of Commerce Chief Economist David Kern said. Conversely, BoE Deputy Governor Paul Tucker says "nobody on the committee thinks that QE has reached the end of the road and that it is not a useful instrument anymore".

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