Bank of England injects another £50bn into UK economy..total amount of QE stimulus to £325bn
The Bank of England has agreed to extend its quantitative easing (QE) programme by £50bn to give a further boost to the UK economy.
When completed, it will bring the total amount of QE stimulus to £325bn.
The Bank started its QE programme, through which it buys mainly government-issued bonds, freeing up cash for lending, in 2009.
The Bank’s Monetary Policy Committee (MPC) also said it would keep interest rates at their record low of 0.5%.
UK interest rates have been held at that level since March 2009.
The BBC’s economics editor, Stephanie Flanders, said the £275bn of QE undertaken so far was an amount equivalent to nearly 20% of the country’s gross domestic product.
Inititally, experts were predicting an extra of £75bn of QE, but this figure was reduced to £50bn when economic surveys released last week indicated that the manufacturing and service sectors had performed better than expected in January.
However, concerns remain over weak consumer spending and the eurozone crisis.
they just keep flooding the markets..the british cash rate is 0.5% and has been for 3 years..in Australia its 4.25% i think and is only now coming down..not much wriggle room under 0.5%..you have no choice in the chaotic world of finances..keep throwing the gas on the fire..your trapped in a system now