Business News
Bank of England restarts quantitative easing
Oct 6, 2011, 11:16 GMT
London - The Bank of England on Thursday decided to inject a further 75 billion pounds (116 billion dollars) into the economy to stimulate flagging growth, raising the total level of so-called quantitative easing (QE) to 275 billion pounds.
The surprise move came after a sequence of disappointing growth figures since the government announced a major deficit reduction programme a year ago.
The Bank of England left interest rates unchanged Thursday at their historic low of 0.5 per cent.
The government had come under increasing pressure to take stimulus measures to boost the economy, as inflation remains high at 4.5 per cent.
Under the QE mechanism, the central banks pumps money into the system to increase spending, mainly through buying government bonds.
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