Sunday, July 1, 2012
Taps on full flow
The Bank of England is preparing to unleash a Â£200bn stimulus package for the economy by printing more money this week and relaxing financial regulations. Details in the Bankâ€™s Financial Stability Report (FSR), released last week, showed that the decision to let banks tap reserves of cash and liquid assets could provide as much as Â£150bn for new lending â€“ a sum equivalent to the entire stock of loans to UK small and medium-sized businesses. Rate-setters on the Bankâ€™s Monetary Policy Committee are also expected this week to unveil a further Â£50bn of quantitative easing (QE).