Bank of England pumps extra £25bn into economy
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Rate-setters elected to pump an extra £25bn into the economy today amid concerns over the UK's faltering recovery.
The Bank of England voted to boost its quantitative easing (QE) programme, which is aimed at increasing the money supply and helping the economy, bringing planned spending to a total of £200bn.
At the end of a two-day meeting, the Monetary Policy Committee (MPC) also chose to keep interest rates at their record low of 0.5 per cent.
The decision will partly appease economists who had called for a hike of up to £50 billion in QE in the wake of disappointing UK figures.
Pressure for steep acceleration of the programme was sparked after a surprise 0.4 per cent decline in the economy between July and September, indicating the UK remained mired in recession, despite news that other countries were beginning to shrug off their downturns.
Figures showing a 0.9 per cent decline in the Bank's preferred measure of money growth in September also raised uncertainty over whether the current level of QE was sufficient.
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Comments
the second wave of economic tsunami will be coming in early 2010 where the governments and the banks will be powerless to do anything about it.
bottom line , we are all paying through our noses for a bunch of corrupt and greedy crooks who control the world including the politicians and the governments , they are called the bankers.
This country has the same chance as any other, but not when your too scared
to chase our debts.
Money is becoming a nonsense.
It would have been more honest to grow our housing market on printed money.
What a disgrace for the U'K.
So is anyone in Government bothering to track where all this QE and other bail-out money has been going, to ensure it's having the desired effect and isn't simply disappearing into some financial black hole or bankers' deep pockets?