PDA

View Full Version : Extra £50bn pumped into economy



Skandi
08-06-2009, 02:38 PM
The Bank of England's rate-setters have decided to pump another £50bn of new money into the economy in their programme of quantitative easing.

It will take their total spending to £175bn, unexpectedly going over the £150bn set aside by the chancellor.

In a statement, they said that the UK recession "appears to have been deeper than previously thought".

The rate-setters also decided to keep interest rates unchanged at their historic low of 0.5% for a fifth month.

Fragile economy

BBC economics editor Stephanie Flanders said that the Monetary Policy Committee's (MPC) £50bn expansion of the programme had surprised many in the markets.

more (http://news.bbc.co.uk/1/hi/business/8187360.stm)

Loki
08-06-2009, 02:41 PM
I.e. they printed £50bn of cash out of blank paper. Great for the pound, no doubt. :rolleyes: