BoE paper finds QE did boost bank lending - slightly
New data set shows effect of increased deposits did feed through to lending
A Bank of England working paper, published on Friday, has found that quantitative easing (QE) in the UK has had a small but significant effect on bank lending, despite its being aimed at affecting demand mainly through the asset price channel.
Mike Joyce of the Bank of England and Macro Spaltro of Morgan Stanley Investment Management used a new, non-publicly available panel data set of UK banks to test their hypothesis that despite QE not being aimed at boosting bank lending, the banking sector
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