Thursday 6 August 2009

Rate-setters pump £50bn more into economy

Independent
"Bank of England rate-setters doused hopes of a rapid recovery today after a surprise move to pump an extra £50bn into the flagging economy.The decision - taking quantitative easing efforts to boost the money supply to £175bn - is the clearest sign yet that policymakers think the UK is still deep in the mire. ...The move confounds speculation before the Monetary Policy Committee's (MPC) latest meeting that QE could be paused amid encouraging signs from industry as well as rising house prices.But the MPC, which also left interest rates unchanged at their 0.5 per cent record low, said the recession "appears to be deeper than previously thought".

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