Central bankers to the UK's rescue - again

Juan Valenzuela gives his thoughts on the impact of the latest round of QE in the UK and abroad.

Following the launch of the Long-Term Refinancing Operation (LTRO) from the European Central Bank (ECB) at the end of last year, central banks around the world have intensified their efforts to stimulate domestic economic growth through conventional, and increasingly unconventional, monetary policy. Most notably, we have seen a reduction of interest rates in China, Brazil and Europe. In the US, the Fed Reserve has extended Operation Twist, designed to reduce longer-dated Treasury yields, until the end of the year and recently announced QE3, this time focused on mortgage-backed securit...