first_img Tags: NULL KCS-content More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com AN INJECTION of cash into the UK economy through quantitative easing could risk the economic recovery and lead to deflation.Fathom Consulting has warned a fresh round of quantitative easing (QE) could become self defeating, as higher headline inflation, without an increase in higher wages, would ultimately be deflationary.Analysts warned a fresh injection of cash could lead to higher food prices, and other commodity prices, but not matched by wages.The position stands against the view of Bank of England Monetary Policy Committee (MPC) member Adam Posen, who has previously voted for QE to stimulate the economy.Posen wants to put in an extra £50bn to the existing QE programme to a total of £250bn.The Bank of England last week held the base rate of interest at 0.5 per cent and confirmed there would be no extension of quantitative easing to increase money supply.But the US Federal Reserve has said its QE policy is working. Forecasts suggest the policy will keep inflation at one point higher and create 3m jobs.Fathom Consulting view QE as successful at holding down both the dollar and sterling “so far”, yet say that the currencies “could rise once more”.It also pointed to the unwillingness of countries like China and Brazil to allow their currencies to rise significantly against the dollar, which could undermine global growth prospects.Fathom director Danny Gabay said: “The bigger risk for countries conducting QE remains deflation.” Cash injection for the UK economy could risk deflation whatsappcenter_img Show Comments ▼ Sunday 16 January 2011 10:11 pm Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndoAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteUndoDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionUndothedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comUndoLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsUndo Share whatsapplast_img

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