Private wealth protected as further QE "unlikely"?

Private wealth may be supported by the news one organisation believes the Bank of England will not engage in any further quantitative easing (QE).

Andrew Goodwin, senior economic advisor to the Ernst and Young ITEM Club, states: "The Bank is right to keep its options open given the heightened uncertainty and risks to the recovery, but at this point we do not expect any more QE."

For those with private wealth the opinion may be welcome, as an injection of cash into the economy would be likely to send the pound lower in Forex markets and could devalue assets priced in sterling.

A negative response in the stock market could also reduce the value of private wealth in shares, while intervention measures can be seen by other countries as a sign of fiscal difficulties, potentially lowering demand for investment and commercial activities.

Last week, Bank governor Mervyn King said the country is facing a difficult, "sober" decade.  ADNFCR-2318-ID-800155001-ADNFCR