UK Inflation Rate Turns Negative for the First Time Since 1960

Any interest rate increase by the Bank of England is on hold through early 2016 after the latest UK inflation report showed rates have turned negative for the first time since 1960. Simon Smith, Chief Economist at FXPro tells TheStreet's Rhonda Schaffler that the drop in the core inflation rate is worrisome for the Bank of England and potentially creates the opportunity for more quantitative easing in the future if the rate continues to fall. Smith also says the ECB's decision to increase bond buying in May and June is due to an expected decline in both liquidity and issuance in the fixed income markets during the summer months.