bank of england restarts emergency stimulus
Monday 7 July 2025
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Bank of England restarts emergency stimulus

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Bank of England restarts emergency stimulus

London - AFP

The Bank of England on Thursday reactivated extraordinary stimulus measures by agreeing to inject £75 billion into a British economy caught up in a global slowdown and fierce eurozone debt crisis. After a two-day policy meeting, the BoE voted in favour of increasing its quantitative easing (QE) policy by £75 billion (86 billion euros, $115 billion) to £275 billion over a four-month period. The Bank of England\'s nine-member Monetary Policy Committee (MPC) also decided to keep the main interest rate at a record-low 0.50 percent, the bank said in a statement. The decision to hold interest rates had been widely expected, while many experts had forecast more stimulus measures as the country\'s economic recovery grinds to a near halt. QE was resumed after a near-two year break. British finance minister George Osborne authorised the resumption of the emergency policy in an official letter to Bank of England governor Mervyn King. \"Further asset purchases provide the MPC with the appropriate tool with which to address the deterioration in economic conditions, particularly in view of the tensions in the world economy that threatens the UK recovery,\" he wrote. \"I am therefore writing to authorise an increase in the ceiling of asset purchases financed by the issuance of central bank reserves from £200 billion to up to £275 billion.\" In reaction, the pound hit a 14-month low against the dollar, before clawing back ground, while the London stock market advanced 2.06 percent in afternoon deals. The policy announcements came one day after official data showed the British economy had flatlined over the past nine months -- and that the 2008/2009 recession was worse than previously thought. Also on Thursday, the European Central Bank held its key interest rate at 1.5 percent, shrugging off speculation it could cut borrowing costs to help combat the region\'s sovereign debt crisis. The Bank of England (BoE) meanwhile warned that Britain\'s recovery was endangered by a flat world economy and the eurozone crisis that has so far resulted in EU/IMF bailouts for Greece, Ireland and Portugal. \"Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world economy threaten the UK recovery,\" the BoE added. The British central bank\'s key interest rate has stood at 0.50 percent since March 2009, when it also decided to begin pumping new cash into the economy under quantitative easing -- more commonly referred to as \"printing money\". Under QE, the BoE creates new cash electronically which is used to purchase assets such as government and corporate bonds in a bid to encourage lending and in turn boost economic activity. The Bank of England had injected a total of £200 billion into the economy between March 2009 and January 2010. Some experts claim that while QE can help to kick-start an economy, it also threatens to fuel inflation, which in the long run can actually hinder growth. With British annual inflation currently at 4.5 percent -- far above the BoE\'s 2.0 percent target -- the bank faces a tricky balancing act. The economy almost ground to a halt in the second quarter slowed by weak consumer spending and industrial output, revised data showed on Wednesday. Gross domestic product grew by just 0.1 percent in the three months to June, meaning that it flatlined over the past nine months. Britain hauled itself out of a deep recession in the third quarter of 2009, but its recovery has also been severely constrained by the impact of collapsing consumer confidence and painful state austerity cuts. Economist Chris Williamson, at financial services information firm Markit, said the risks of falling back into recession had become \"sufficiently high to warrant immediate action\" by the Bank of England. \"The strategy is of course not without risk... Printing more money is inflationary, and high prices are already one of the factors hurting households and subduing economic growth,\" he added. Revised official data published Wednesday also showed that Britain\'s 2008/2009 recession was much deeper than previously thought. The economy experienced a peak-to-trough fall of 7.1 percent, rather than the previous estimate of 6.4 percent.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england restarts emergency stimulus bank of england restarts emergency stimulus

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of england restarts emergency stimulus bank of england restarts emergency stimulus

 



GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 05:17 2024 Wednesday ,07 February

Amazon to open first cashierless shop

GMT 11:14 2017 Saturday ,22 July

Smiley face found on ancient pot in Turkey

GMT 00:49 2017 Friday ,13 January

Meet Cats choreographer Gillian Lynne

GMT 09:57 2016 Tuesday ,08 November

Marks and Spencer: To shut 100 stores in overhaul

GMT 06:37 2012 Wednesday ,21 March

Toxins found in cheap jewellery

GMT 10:30 2015 Monday ,02 March

Designer to the stars dresses disabled catwalk

GMT 08:57 2017 Wednesday ,10 May

Counter terrorism strategies should be compliant

GMT 20:48 2017 Wednesday ,22 March

Sisi reiterates Egypt's support for Lebanon

GMT 06:59 2017 Sunday ,22 October

Philippines' Duterte says he will shoot criminals

GMT 19:57 2018 Tuesday ,23 January

Farm-fresh from Kerala to the UAE, in just one day

GMT 09:36 2018 Wednesday ,10 January

Iran investigates death of young man in custody

GMT 08:51 2017 Tuesday ,15 August

HAAD implements next stage of healthcare reforms

GMT 20:22 2017 Monday ,27 November

Army attacks Saudi-paid mercenaries’ sites in Marib

GMT 08:56 2017 Thursday ,13 July

Reasons of price increase of services

GMT 08:13 2017 Sunday ,13 August

Abdul Hussain Abdul Redha passes away
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice