This week it was announced that the Bank of England’s Monetary Policy Committee would be holding interest rates at the same rate, but to help lower the cost of borrowing and hopefully bring cheaper mortgages as a result, it would be pumping an additional £50 billion into the economy, a move that is known as quantitative easing (QE).
Quantitative easing has already been put in place to some degree and this extra £50 billion brings the total amount to £25 billion more than what was originally anticipated. The Bank of England has also said it expects the move to take around three months to have its effect. BBC News questioned if QE was working yet.
Already, they concluded there were some tentative signs of a recovery and not only in the housing market where we have seen price increases after 18 months of falling. Lending has increased, albeit still only in certain sectors, retail sales are up and factories are producing more.
According to David Frost, director general of the British Chamber of Commerce (BCC), QE does seem to be starting to work but the Bank of England needs to add more to it yet.
The report also showed that house prices are increasing and mortgage applications and approvals are rising, all of which are great signs for those wanting to do CeMAP training but of course are still a way off the housing boom figures.