falling about 40%.Themedium-term inflation expectation seems to have remained stable

the effect of QE 2 is expected tobe larger than that of the 0.75% interest rate cut.The impact on the exchange rate was small; the event study suggests that the scale of theimmediate response of sterling to the QE announcements would bring about an estimateddepreciation of 4%.During the period of February 2009 to March 2010

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