Bank of England on verge of new money boost

Finance minister George Osborne tweaked the central bank’s mandate two weeks ago, giving it stronger backing to continue ignoring inflation when it overshoots its target due to one-off factors, reports The Telegraph. But only a handful of economists polled by Reuters last week expect the central bank to add this month to the £375bn of government bonds it bought between March 2009 and October 2012.

WASHINGTON – The Federal Reserve on Wednesday left in place its monthly US$85-billion bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary. Describing the nation’s job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until the outlook for employment improves substantially.

There is not an ability of central banks to take all these risks out or set the seeds for a sustainable recovery Bank of Canada Governor Mark Carney, urging central banks to secure “escape velocity” for their economies, said there is still room for more monetary stimulus around the world if needed. In comments that may shed light on his thinking as he prepares to take over the Bank of England in July, Carney said policy in developed countries isn’t “maxed out” and that central bankers can be flexible in meeting inflation goals.

According to minutes of the bank’s last policy meeting, officials are split 5-4 on a move to launch a new round of monetary stimulus because of the worsening euro zone crisis.