04 August 2016 at 21:56 GMT
The Bank of England’s decision to combine a cut to the Bank rate with an increase in bond buying raises the issue of how big their balance sheet will become relative to the size of the market. The chart below shows the BOE is already a bigger player than the US Fed or ECB, but way behind the Bank of Japan. Yesterday’s announcement from Mark Carney suggests a return to the 2012 levels. Carney also suggested negative rates for the UK are out of the question, so any further monetary easing would have to come via a final drop in the Bank rate to zero plus even more bond buying.