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Justin Kuepper

Bank of England Considers Liberal Policy Measures

By January 18, 2013

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Bank of England policymaker Ian McCafferty recently said that officials need to "be open to considering other unorthodox means to conduct monetary policy if they become necessary," signaling that the central bank may be considering more liberal policy measures.

After retail sales fell unexpectedly in December, many citizens are growing increasingly restless and unsupportive of the largely austerity driven response to the economic downturn. As a result, quantitative easing or other atypical policy measures may now be considered to help.

For investors, this could mean a lower valuation for the British Pound, boost for British equities, and a potential rally in the country's bond market, depending on the nature and scope of the future decisions that will be made.

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