Bank cuts rates to 0.5%

[Legal Beagles]

• Interest rates lowest since Bank founded in 1694
• Darling gives quantitative easing go-ahead
• Bank to spend £75bn buying up debt


The Bank of England has cut interest rates by a half point to another record low and begun the process of pumping billions of pounds into Britain's troubled economy.
At noon today the Bank announced that rates are being lowered again to 0.5%, the lowest since the central bank was founded in 1694.
With its rate-cutting ammunition all but exhausted, the Bank pressed the button on a much more drastic policy, quantitative easing - the process of buying up government and corporate debt – in an effort to kick-start the economy.
Alistair Darling gave his permission earlier today for taxpayers' money to be put at risk, giving the Bank the green light to start quantitative easing. It will spend £75bn buying up assets.
Most economists believe that quantitative easing - also known as printing money - could help pull the economy out of its worst recession in two decades.
Today's cut is the sixth time that UK borrowing costs have fallen since October, when rates were still 5%, and is another blow for savers.

• Interest rates
• Quantitative easing
• Bank of England
• Interest rates
• Economic policy
• Economics

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds



More...

[Amethyst]

Re: Bank cuts rates to 0.5%

oooo how lovely

(yes I know simplistic one sided opinion)