Monday, July 4, 2011

Bank may start printing money again!

The possibility of a further huge injection of money to underpin the economy will be discussed by policymakers at the Bank of England this week, pushing back until deep into next year the prospect of any rise in interest rates from their all-time low of 0.5 per cent according to the Independent

A further £50 billion in "quantitative easing", colloquially termed "QE" or "printing money", could be announced by the Bank as early as this week, though many commentators think they will postpone a move until the picture becomes clearer still. The Bank has already pumped £200bn into the financial system. A second round – dubbed "QE2" – is now on the cards.

Politically, QE2 would be highly charged, as it would make more explicit the policy, hinted at by the Bank and the Chancellor: that the Bank will support the economy while the Treasury goes about cutting public spending, jobs and the budget deficit…


Read more at http://www.independent.co.uk/news/business/news/bank-may-start-printing-money-again-as-fears-for-economy-spread-2306284.html

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