Is the Bank of England close to pulling the trigger on more QE?

The Bank of England is close to announcing a further bout of asset purchasing, particularly as gilt yields continue to soar, Kames Capital's Iain Buckle has predicted.

The manager of the £475m Kames Sterling Corporate Bond fund said gilt yields have moved higher as investors turn to more risky asset classes ahead of the now "widely anticipated" downgrade of the UK's AAA credit status. However, he continues to hold short-term gilts, described by his colleague Stephen Snowden as a "necessary evil", in the expectation the Bank will launch more QE to stimulate the economy. "Our domestic economic outlook is far too weak to withstand a meaningful rise in market interest rates in the short term. The UK economy still needs to de-lever, both at a household a...