Daily Archives: September 30, 2011

Claire Jones

Central banks are usually the most conservative of lenders, accepting only the safest assets in return for their cash.

However, many have been willing to lower their standards since the crisis began in order to counter liquidity shortages.

Even so, what the National Bank of Denmark has done today is drastic. 

Claire Jones

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Both the European Central Bank and the Bank of England will vote on monetary policy on Thursday.

The Monetary Policy Committee decision is out at noon local time (11.00 GMT). According to a Reuters poll, most expect the Bank to hold rates and maintain the stock of asset purchases at £200bn. However, a significant minority predict more QE, with most of these believing that £50bn is the amount that the MPC is most likely to plump for.

Though those expecting more QE in October are in the minority, the bulk of analysts do believe the Bank will expand its asset purchases at some point in the near future, with November considered the most likely option. The Bank also publishes the minutes of its FPC meeting on Monday at 09.30 local time (08.30 GMT), which may shed some light on the rather ambiguous statement that came out this week.