BOE willing to do more quantitative easing

Gilt futures spiked to a two-week high and the 10-year cash yield fell about 10 basis points on February 24 after Bank of England policymaker Adam Posen told Reuters that the Bank would not hesitate to do more quantitative easing if the UK economy needed it. Posens comments came in an exclusive interview with Reuters Insider television. His opinion that it would be damaging to the UKs economic recovery to remove policy support before the banking sector was sufficiently robust and reformed, reinforced the view among traders that QE — rather than simply low interest rates — could be part of the trading backdrop for an extended period