You are here > Home > News
Bank of England could return to quantitative easing
Accountancy News |
24/02/2010
The Bank of England could soon return to its quantitative easing programme, according to governor Mervyn King.
Earlier this month, the Bank's Monetary Policy Committee (MPC) halted the £200 billion economic stimulus initiative, but the weakness in the eurozone could now cause it to be reactivated.
Quantitative easing sees additional finance injected into the economy through the purchase of government assets.
Addressing the Commons Treasury select committee on Tuesday, Mr King said that although the UK economy has "embarked on a process of healing", it could be some time before a recovery is complete.
"My particular concern at the moment derives from the health of the global economy, and in particular our major trading partner, the eurozone," he stated.
As well as choosing to halt quantitative easing, the MPC voted to freeze interest rates once more at their historic low of 0.5 per cent.
The Bank's base rate has now remained unchanged since March 2009.
Posted by John Lynes
------------------------------------------------------------------------
Accountancy Recruitment Agency - Transparent Recruitment Fees Since 1999 - 12.5% Fee / 3 Month, 100% Rebate.
Sign up to our e-newsletter service to receive our headline news directly to your inbox
