To QE or not to QE? The market has spoken

Prof. Anthony J. Evans was asked to contribute his thoughts to Management Today's article on the Bank of England's decision to freeze interest rates again.

"The Bank of England's policy rate has been historically low for some time now and this cannot continue indefinitely. The aim of low interest rates is to boost the economy by creating incentives to borrow money and invest. But higher capital requirements and policy uncertainty create counter forces that restrict bank lending.

"In these circumstances the purported 'benefits' of low interest rates fail to materialise, but the costs certainly do..."

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