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    For once I can agree with Alexander.

    The problem is that with interest rates as low as they have QE is one of the few tools the BoE has. There is not such thing as free money and the payback for this is in inflation.

    I have to be clear though, the economy is so weak that some of this QE can be soaked up and if there was no QE we would be at risk of another problem, deflation. The difficulty is judging how much is enough and the long term impact and in this we are in unknown territory.

    I start from the basis of 'sound money' and am inclined to be very wary of QE.

    That said inflation is falling this year but is very likely to increase next year and onwards and, when the economy strengthens we will find the control of inflation that much more difficult.

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