With the news outlets constantly pumping out a huge volume of reports excitedly noting that the US economy is no longer in Recession, the UK Bank of England has pumped an extra £25 billion in to the economy as part of its quantative easing programme. Interest rates were kept at 0.5%.

The bank has already spent £175 billion on the programme.

“A number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.” Mervyn King, Govenor of the Bank has said.

The Federal Reserve Board here in the US has decided to leave rates untouched an has hinted that they will remain steady for a long time. The idea of course is to foster economic growth and help the economy to remain back on track until it is more solid.

What is interesting is that having clients on both sides of the pond, I can see both points of view – the US has always been a more optimistic nation, therefore the economic climate is more upbeat, that things are changing. Whereas the UK is wallowing in self pity, convinced that nothing is going to happen any time soon. However the mood need not be that bad there. One only has to look at how other countries have suffered from the downturn to realize that the UK has held up well.

I am reminded of a famous quote by Margaret Thatcher:

“It is not easy, but then our forebears who created the industrial revolution did not have it easy either. But they did not say we must wait for the upturn to come. They went out and created the upturn. And so prosperity spread. And the standard of living rose. Even though Departments of Industry didn’t exist.” (1983)

In short – things can only get better! (excuse the reference to the New Labour 1997 Election motto!)

P.