The Bank has said it will expand the amount of money in the system by £75bn to help get the lending markets going again, known as quantitative easing.
Sinclair, says:“The most important aspect of today’s announcement is the Bank of England’s commitment to quantitative easing. AMI has consistently argued that the fundamental problem in the mortgage market has been a lack of liquidity. The £75bn injection announced today should begin to go some way to alleviate this problem.
“It is encouraging that the Bank is finally recognising the key issues facing markets and the systemic problems preventing lenders, intermediaries and consumers from moving forward. We have consistently called for concerted action over the last 12 months to address the underlying issues in the market.
“In addition to improving liquidity, the government must accelerate the removal of ‘bad loans’ in order to restore confidence in the market place. The need to speed the introduction of the Crosby measures to support lenders and expanding initiatives to a wider group of lenders cannot be over-emphasised. AMI will continue to call for these urgent changes.”