Ward: UK GDP fall could trigger £50bn more QE in June

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The worse-than-expected decline in UK GDP is likely to spur the Bank of England into injecting another £50bn into the economy next month, said Henderson's Simon Ward.

The group's chief economist said the revised contraction in GDP announced by the Office for National Statistics (ONS) - which showed the economy had shrunk by 0.3% rather than the initial estimate of 0.2% - means another round of quantitiative easing looks likely next month. "I would expect another £50bn next month, rather than July," he said. Ward added he is surprised the Bank of England has not increased the size of the asset purchase scheme already following a string of weak economic data. "I expected them to announce something in May, but there is enough in the latest MPC minu...

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