The BoE has "signalled privately to bankers" of a possible extension if market turmoil "flares up" again over Britain's debt-fuelled budget, the FT said citing people briefed on discussions.
This marks an abrupt shift in the economists’ expectations at a time of surging inflation and tumbling unemployment
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The BoE kept its benchmark interest rate at an all-time low of 0.1% and the size of its bond-buying programme unchanged at 895 billion pounds ($1.24 trillion).
The Bank of Japan likely reduced government bond buying this month than in December by forgoing purchases of short-term bonds on Wednesday, a move some market players saw as a prelude toward tapering the central bank's massive asset-buying programme.
Concluding their first policy-setting meeting of the year, Fed officials looked past the urgent moves made by other central banks this month to boost their struggling economies and saw continued economic expansion in the United States.
The Bank of Canada joined the list of "unpredictable" central banks on Wednesday with a shock quarter point rate cut as the European Central Bank prepared a 600 billion euro (USD 695 billion) bond-buying program aimed at lifting Europe out of its economic doldrums.
Asian shares rose to near eight-week highs on Thursday as investors bet the European Central Bank will unveil a bond-buying stimulus programme later in the day in an attempt to revive the flagging euro zone economy
Market expectations are sky-high for the ECB to unveil a large-scale programme of quantitative easing (QE) - printing money to purchase the sovereign bonds - despite opposition from Germany's Bundesbank and concerns in Berlin that this could allow spendthrift countries to slacken their economic reforms
The US Federal is expected to wrap up its bond-buying program by October as scheduled but it is expected to keep interest rates low for longer than previously expected, according to Richard Gibbs, Global Head of Australia-based Macquarie Securities.
The Fed is likely to announce the end of its massive bond-buying stimulus when it wraps up the two-day meeting on Wednesday. Investors will be scrutinising the Fed's statement for signals about a rate increase and its view on the global economy.
Dallas Federal Reserve Bank President Richard Fisher also repeated his view that Wall Street reform legislation does not fix the too-big-to-fail bank problem.
"The door has to be seen as open for changing the pace at which the Fed trims the programme," said Richmond Federal Reserve President Jeffrey Lacker.
If inflation does not show signs of returning to target, the US Federal Reserve will take appropriate action.
Global markets have reacted surprisingly well to the long-dreaded decision by the Federal Reserve to trim its stimulus, with Wall Street stocks at record heights and the dollar above 104.00 yen for the first time since 2008.
Gold recovered on Thursday from overnight losses prompted by the Federal Reserve's decision to cut back its stimulus, indicating that investors had already priced in a small reduction in the central bank's bond purchases.
Japan's Nikkei share average jumped 1.5 percent on Thursday morning to within striking distance of its year high, as global equity markets took the glass half-full view after the U.S. Federal Reserve announced it would start to unwind its historic stimulus.
The Federal Reserve announced Wednesday it would start to taper its aggressive bond-buying program to USD 75 billion a month beginning in January, propelling the market to a record close.
Speaking to CNBC-TV18, Patrick Legland, global head of research, Société Generale, says the Fed chairman Ben Bernanke will, in all likelihood address the question of QE tapering today evening.
Faber has been predicting so-called "QE infinity" because "every government program that is introduced under urgency and as a temporary measure is always permanent." He also said, "The Fed has boxed itself into a position where there is no exit strategy."
Another policymaker underscored the importance of the issue of asset bubbles as he laid out possible approaches to protecting the broader economy, but without endorsing any one.
CIMB is cautious on Indian markets going forward. It feels that the eventual taper of the monthly asset purchase programme by the US Federal Reserve will have a negative impact on India.
Henderson Global Investors feels that the new US Fed chairperson Janet Yellen could face the challenges of a divided central bank. He says that there could be a delay in the tapering of bond buying programme which will benefit emerging markets.
Kansas City Federal Reserve President Esther George, an outspoken policy hawk who was the sole dissenter at the Fed's September 17-18 policy committee meeting, said that she had been disappointed by the majority's decision.