OECD: BoE should prepare for more QE

<p>The OECD has stated that the BoE should prepare for another round of bond purchases.</p>

The pound has failed to gain ground in trading against the dollar this afternoon (February 6th), after one leading organisation stated the Bank of England (BoE) needs to prepare to inject more money into the economy.

According to the Organisation for Economic Co-operation and Development (OECD), if the state of the nation's financial health remains weak then it would seem that a further round of quantitative easing is the best option for the country.

The last time the BoE increased its QE programme was in July, when the Monetary Policy Committee voted in favour of a £50 billion increase. Currently the total amount injected into the economy via bond purchases now stands at £375 billion.

In its latest economic survey the OECD stated: "Overall, in the current economic situation, further expansion of the asset purchase programme would be warranted if the economy stays weak."

At 16:30 GMT, the pound was flat against the dollar with £1 buying $1.565.

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