11 Mar

Bank starts quantitative easing

Bank starts quantitative easing

The Bank of England has launched its quantitative easing scheme in which it will seek to pump £75 billion into the economy.

Today saw the central bank pick up £2 billion worth of government bonds from investors and individuals at competitive auctions in the first stage of the programme.

It hopes to be able to kick-start the economy with the monetary injection, something that could help the property market to bounce back.

Further buy-ups of bonds from the government and the private sector will follow as the programme is rolled out.

The decision to go ahead with the scheme was announced earlier this month alongside the most recent monetary policy committee decision, which saw the base rate cut to 0.5 per cent, a new record low in the institution's 315-year history.

In its announcement, the Bank said the process of buying up assets could take three months.

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