Bank pumps extra £25bn into economy

Thursday 5th November 2009

The Bank of England has today announced an extra £25 billion will be pumped into the economy through its quantitative easing (QE) programme.

The Bank's monetary policy committee (MPC) also confirmed interest rates would be left unchanged at 0.5 per cent.

The rate has remained the same, a 300-year low, since March, with many financial analysts predicting it could stay at 0.5 per cent into 2010.

There had been numerous calls for the Bank to raise the limit of its QE scheme from £175 billion to over £200 billion prior to today's announcement.

Chancellor of the Bank of England had to ask chancellor Alistair Darling for permission to allocate the money.

The Bank said it would add an extra £25 billion to the programme, with the size of asset purchases kept under review.

Britain's economy had been expected to show signs of growth in the third quarter of this year, however surprising figures released last month showed the country was still in recession, making it one of the last remaining developed nations to return to growth. ADNFCR-1783-ID-19442820-ADNFCR

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