Quantitative Easing Program
Discussions of extending the quantitative-easing program beyond the 150 billion pounds is going on. It is a sterling negative action if you view that printing money is a way of cheapening the currency.
A cheaper Pound could be the way to stimulate the economy and spurs economic recovery.
The probability that they will extend the program is reasonably significant
Jeremy Stretch, a senior strategist at Rabobank International in London.
The British Chambers of Commerce, a business lobbying group, is whispering for the Central Bank, the BOE to extend its quantitative-easing program to the full 150 billion pounds ($243 billion) package and further suggests that the BOE should spend more by designing a second package. They are in the opinion that spending more money under the quantitative-easing program will help the economic recovery.
Cheaper Pound
A cheaper Pound will be known soon as BOE policy makers will meet on July 9.
Cheap Dollar too
The US is not sitting back. They are thinking of a cheaper Dollar as well by continuing their money printing program.
The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the first plan was a bit too small.
Laura Tyson, an economic adviser to President Barack Obama.
Meanwhile, Forex Traders are waiting to digest incoming economic reports to gauge the prospects for an economic rebound.
