@innovate, the money goes to the banks indirectly by pumping gilts which banks own. Banks leverage the increase asset or sell the asset at a profit. However the quick indirect effect to this is OIL goes UP, and consumers SPEND LESS. Considering the UK service sector is 70% of GDP, ditto many other G20's, QE does not resolve the problem, it just keeps the 1% stocked with caviar. Welcome to the OIL creation of n(times)# DIP phenomenon.....this will not end until QE stops, QE is a mechanism to fund governments who refuse to balance budgets. The independence of BOE does not exist as the current slow down is natural for the time of year, as I've stated previously. King refuses to allow the Magic 2% to be hit as this would cure unemployment (see Germany for how to create & power a country on low inflation). I'm afraid whilst King & Co are in power of the central bank, they will not manage the economy successfully as demonstrated over the past decade & 2% target is never hit as the average.
FT article: Bank pumps £50bn into stalled economy
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