The Bank of England’s policy-makers are not expected to vote for further quantitative easing measures after a leading think tank said that Britain’s economy will outstrip all other major European economies in 2013 and 2014.
The Center for Economics and Business Research has predicted that the Eurozone will face a deep recession in 2013 with only marginal growth in 2014. The UK on the other hand is expected by 0.8% in 2013 and 1.4% in 2014, much faster than Italy, Spain, France and even Germany.
“The economic situation in some parts of Europe is moving from bad to catastrophic. There is a danger that the economic problems will spill over into social breakdown in many areas of Europe as unemployment soars and governments run out of money,” said Douglas McWilliams, chief executive of CEBR.
The Bank of England’s monetary policy committee is expected to leave the level of quantitative easing unchanged at the £375billion mark and it is thought they will opt to leave interest rates on hold at 0.5% on Thursday after the economy grew by a solid 1% in the third quarter.
Howard Archer, chief UK economist at IHS Global Insight, said this week’s decision would be a “close call” but expected no additional QE to be announced.
Economists had been predicting that the committee would opt to introduce a further £50 billion injection of Quantitative easing at this month’s policy meeting but that view has been adjusted due to the strong GDP figures posted last week.
These exchange rates were correct as of 10:00 am
The Pound to Euro exchange rate is currently trading at 1.2482
The Pound to US Dollar exchange rate is currently trading at 1.5977
The Pound to Australian Dollar exchange rate is currently trading at 1.5440
The Pound to New Zealand Dollar exchange rate is currently trading at 1.9377
The Pound to Canadian Dollar exchange rate is currently trading at 1.5920
The Pound to Emirati Dirham exchange rate is currently trading at 5.8675
The Pound to Swiss Franc is currently trading at 1.5062
The Pound to Japanese Yen exchange rate is currently trading at 128.2200
The Euro to US Dollar exchange rate is currently trading at 1.2798
The Euro to Pound exchange rate is currently trading at 0.8008
The Euro to Australian Dollar exchange rate is currently trading at 1.2367
The Euro to New Zealand Dollar exchange rate is currently trading at 1.5521
The US Dollar to Pound exchange rate is currently trading at 0.6192
The US Dollar to Euro exchange rate is currently trading at 0.7730
The US Dollar to Canadian Dollar exchange rate is currently trading at 0.9943
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9648
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.2120
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