Did Quantative Easing work for your financial Planning?
Thursday, August 6th, 2009It is good to see that the stock markets of the world have shown signs of recovery from the falls that they suffered, reaching their overall lows in early March 2009.
The Bank of England, along with many central banks of the globe have continued with their Quantative Easing Programmes over the course of 2009 to help the flow of money around the markets and to try and curtail the effects of the recession. One significant point of interest is that the funds available to the Bank of England for their Quantative Easing programme are coming to an end and this initiative may cease before the autumn period. This raises the question of whether the overall process has worked in moving the economy forward and hopefully over the worst period.
Many are also predicting that the continued level of low bank base rates is unlikely to continue and that these are likely to rise in 2010. It is also muted by many pundits that inflation may also rise at the same time. Any rise in base rates may well be a welcome relief to deposit savers and correspondingly disappointing news for those with variable interest rate borrowings. I have commented on this below. With these changes ahead, financial planning continues to be a vital commodity for household economies
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