After the surprise news today that annual inflation fell to a two-and-a-half year low of 2.8 per cent in May, analysts now increasingly expect the Monetary Policy Committee to announce more quantitative easing on 5 July.
Following Sir Mervyn’s Mansion House address last Thursday, it has largely been a case of when — not if — the MPC would plump for more money printing. But before today’s inflation number, analysts were split on whether more QE would come in July, or in August.
Now, the majority expect further asset purchases to come sooner rather than later. Here’s what economists are saying: Read more
The Federal Reserve Board is used to long periods without a full complement of governors. Now, the European Central Bank’s executive board is experiencing how it feels when politicians dither.
An ECB spokesman has confirmed that Mario Draghi, president, has written a brief but pointed letter complaining that eurozone governments have still to agree a successor for Spain’s José Manuel González-Páramo, whose term on the central bank’s six-man executive board expired at the end of May. The vacancy has increased the workload of the five remaining board members — not exactly what they need with the eurozone crisis re-escalating. Read more