11
Mar
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.
