Thursday, August 6, 2009
No change to UK Bank Base Rate of 0.5% but more cash required !
The Bank of England's rate-setters have decided to pump another Â£50bn of new money into the economy in their programme of quantitative easing. They have spent Â£125bn so far in their attempts to stimulate the economy by putting more money into circulation. In order to extend the programme beyond Â£150bn they will have had to seek permission from the Treasury. The rate-setters also decided to keep interest rates unchanged at their historic low of 0.5% for a sixth month.