The underlying money supply grew at a sluggish pace in the second quarter of this year, raising questions about the effectiveness of quantitative easing.
So-called M4 “broad” money, excluding distortions from within the financial sector, grew at an annualised 3.7 per cent in the second period, Bank of England figures showed on Tuesday. That is a meagre increase on the 3.3 per cent growth rate – revised down from 6.2 per cent – in the opening period. The Bank has pointed to the obscure measure as a key indicator of the impact of quantitative easing.
