In a positive effort to bolster the economy, the US federal reserve initiated “Operation Twist”, a $400M buyback of long dated treasury securities and send short dated securities in order to drive down the long term interest rates and ensure growth.
Bank of England, in the minutes of September monetary policies, also indicated a second round of qunatative easing (QE) was on cards in order to stimulate the economy, which currently has a bleak GDP growth of 1.3% as per IMF’s recent report.
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