Bank of England agrees to inject £ 75 billion to shield the British economy

Thursday, October 6th 2011 - 16:59 UTC

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Euro crisis has caused severe strains on financial markets, said Governor King

The Bank of England will inject 75 billion pounds to shield Britain's economy from the Euro zone debt crisis and keep a faltering recovery going, opting for an early, dramatic move to maximise the impact.

Thursday’s decision by the BoE to expand its asset purchase program to £ 275 billion pounds highlights the precarious state of Britain's economy as global growth slows, government spending cuts and tax hikes bite, and consumers face high inflation and slow wage rises.

BoE governor Mervyn King said in a letter to Finance minister George Osborne that the global economic recovery had slowed, and that the Euro debt crisis had created severe strains on financial markets.

“These tensions in the world economy threaten the UK recovery,” King said.

While inflation was still expected to rise above 5% over the next months, the recent deterioration of the outlook had made it more likely inflation would undershoot the 2% target over the medium term.

The bold move puts the BoE ahead of other central banks in responding to a darkening global economic outlook and renewed market turmoil.

The UK central bank kept interest rates on hold at a record-low 0.5%, while the ECB has raised them twice this year to 1.5%.

Categories: Economy, International.

Tags: Bank of England, Eurozone crisis, George Osborne, Mervyn King.

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Marcos Alejandro
Telegraph
“Bank of England governor says the financial crisis is ”at least“ as bad as the Great Depression as central bank launches an extra £75bn of 'MONEY PRINTING' to help ease severe strains in bank funding”

http://www.debtbombshell.com/
Oct 06th, 2011 - 05:34 pm 0
geo
in 2007 ..UK gross government debt ... 43,9 % GDP

in 2011 ..UK gross government debt ... 80,8 % GDP.
Oct 06th, 2011 - 07:43 pm 0
Fido Dido
yeah wohooo, keep printing money, where does it goes? the bankster, but I'm sure that's all fine for the “people” in the UK, they love it.
Oct 06th, 2011 - 10:04 pm 0

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