Bank of England Governor Mark Carney has warned the “great risk” of unwinding the current quantitative easing programme. The stimulus was headed by his predecessor Mervyn King, a mixture of ultra-low interest rates and QE.
Carney was speaking to the House of Lords, mentioning the risk of the Federal Reserves tapering of their QE, and how the BoE might execute its unwind. This is a difficult task, as the UK economy is staging a recovery, though there is concern increasing interest rates to quickly, or reducing the level of QE will hurt the recovery.
The Bank of England minutes and UK unemployment data will be released at 9:30 London.
Then all eyes will be on the conclusion of this evenings Federal Reserve meeting, to see if Bernanke does Taper at his final meeting.