Bank of England to inject $116B into economy
Jason Riddle, co-founder of ‘Save Our Savers’ lifts a giant papier mache piggy bank outside the Bank of England in London on October 6, 2011. The Bank of England agreed to inject $116 billion into the British economy on Oct. 6, 2011.
The Bank of England announced its plans to inject another $116 billion (75 billion pounds) into the economy in an attempt to boost demand and prevent inflation from falling too low.
The Guardian reported the bank will use the money in an attempt to stimulate the ailing economy.
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This is the second time the Bank has added money, reported Al Jazeera. It previously injected $308 billion (200 billion pounds) into the economy by buying assets like government bonds.
The most recent dose of money is the first time money has been added though quantitative easing since 2009.
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According to the Guardian, Sir Mervyn King, the Bank of England’s governor, said the U.K. was in the midst of the “most serious financial crisis” since the Great Depression in the 1930s and dismissed fears that the monetary injection would add to inflationary pressure.
The move came after data on Wednesday showed 0.1 percent economic growth in the U.K., which was less than expected, the BBC reported. The Bank of England’s interest rates also held at 0.5 percent, a record low.
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