It is an important tool of monetary policy used by the central banks to encourage the economy during the time of the ineffective standard monetary policy. As per the requirement of the case study, the Bank of England focused on the increase of the interest rates, investors do not need to ignore the alternate impact that the quantitative easing programme is to persist to apply the monetary policy. According to Chaney (2016), Bank of England performed from the last bout of the quantitative easing. In addition, the quantitative easing in case of UK, the banks possess to find out a new housing plan for £17 billion.
Financing of high quality private sector assets by treasury issuance:
In this purpose, it can be included that the amount of share of a company needs to keep in the context of treasury. A company needs to hold the shares for resale or for the reissuance at later. The reasons can be discussed as the stock of the buyback programme is wished to decrease the total amount of shares. As a result, the earning per share is increased effectively.
The characteristics of stock prices in considered in case of investing. In order to estimate the stock market prices, the development of GDP refers that these two parameters used to move together. As stated by Zhao (2010), a strong connection between the economic development and the prices of the securities engages that stock price is supposed to be the discounted current valuation of the business. On the other hand, there is a debate between the relationship of stocks and economic output.