BOE injects £50 billion into economy - Economy - News - Moneyfacts

News

BOE injects £50 billion into economy

BOE injects £50 billion into economy

Category: Economy

Updated: 09/02/2012
First Published: 09/02/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England has injected another £50 billion into the UK economy as part of its programme of quantitative easing (QE).

Interest rates have also been frozen at 0.5%, a level which has remained in place since March 2009.

It means that rates will have remained at the record low for three years by the time the Bank's rate setting group, the Monetary Policy Committee, meets in March.

The QE initiative works by the Bank of England buying up bonds from the Government and the banks, with the end result being that funds trickle down into consumer and business lending.

The size of the Bank's QE programme is now £325 billion, although some experts thought today's injection would be £75 billion.

The British Chambers of Commerce (BCC) welcomed the injection of funds.

"Although the benefits are not immediately obvious to the business community, quantitative easing plays a key role in strengthening the financial system and stabilising the wider economy," said David Kern, chief economist at the BCC.

"In the face of difficult domestic circumstances and the ongoing crisis in the eurozone, the decision was a sensible one."

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…
 
Close