Thursday 7 May 2009

Bank of England to pump another £50bn into economy as it steps up recession fight

Telegraph
"The Bank has been authorised by the Treasury to spend a total of £150bn on quantitative easing, so by announcing an extra £50bn today, it still has £25bn left to spend on gilts should it deem the move necessary. ....."The Bank of England was always going to keep interest rates down at 0.5pc, but by expanding its quantitative easing programme by £50bn to £125bn indicates that the MPC believes that the economy still needs support despite recent mounting signs that the rate of economic decline is moderating," said Howard Archer, economist at IHS Global Insight."
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Comment:"quantitative easing" is devaluation in all but name: So Sterling is devalued even further.

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