Videos | October 12, 2011

Economic update October 2011

Central banks in the Eurozone, United Kingdom and United States are making extraordinary moves to try to prevent another major market collapse in the near future, say ING Bank economists.


In the October economic update video, ING Commercial Banking chief international economist Rob Carnell explains how quantitative easing works and some of the implications for investors.

Central bank action
In the United Kingdom, the Bank of England has announced on a new round of quantitative easing (QE), worth £75 billion over three months. In the Eurozone, the European Central Bank announced €40 billion of “QE-lite” covered bond purchases. The United States is also expected to also embark on another round of the so-called money printing by the end of the year.
“Some say the next round could be as big as $1 trillion,” says Carnell. “Each of these policies is part of a bigger package of support measures.”

Interest rates forecast to hike in 2013
Carnell tells how the October ING economic forecasts show the next interest rate rises in the UK, US and Eurozone in 2013. In the Eurozone, rates are forecast to fall first.

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eZonomics team
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