The Bank of England has announced it will pump an extra £50 billion into the economy as part of its quantitative easing programme.
First introduced in March, the scheme effectively involves the Bank printing money to buy Government and corporate bonds. It is hoped the additional cash will kick-start the UK’s economic recovery.
Confirming its decision, the Bank said: ‘The world economy remains in deep recession. Output has continued to contract and international trade has fallen precipitously.
‘The global banking and financial system remains fragile despite further significant intervention by the authorities.’
The latest cash injection means the Bank is on course to print £125bn under the scheme, which will now run for a further three months.
It came as the Monetary Policy Committee kept interest rates on hold at 0.5%, despite a rates reduction by the European Central Bank.
First introduced in March, the scheme effectively involves the Bank printing money to buy Government and corporate bonds. It is hoped the additional cash will kick-start the UK’s economic recovery.
Confirming its decision, the Bank said: ‘The world economy remains in deep recession. Output has continued to contract and international trade has fallen precipitously.
‘The global banking and financial system remains fragile despite further significant intervention by the authorities.’
The latest cash injection means the Bank is on course to print £125bn under the scheme, which will now run for a further three months.
It came as the Monetary Policy Committee kept interest rates on hold at 0.5%, despite a rates reduction by the European Central Bank.