Menu
11/03/2009
Bank Starts 'Printing Money' To Boost Economy
The Bank of England has started pumping newly printed money in an attempt to ease Britain out of recession.
The Bank's Monetary Policy Committee (MPC) has embarked on "quantitative easing" - the process of printing money - in an attempt to boost credit supply and encourage greater lending again from the banks and institutions.
It has also begun offering to buy £2 billion of government bonds - or gilts - from individuals and investment institutions, in the first of a series of auctions which will take place this week.
The MPC hopes those who sell the gilts will place the new money into their accounts with UK banks. This in turn would boost deposit bases and allow them to lend to individuals or companies.
The bank will buy up the bonds through its Asset Purchase Facility, financed so far by the sale of Treasury bills.
The first auction was scheduled to take place at midday today, and two hours later the second so-called 'reverse auction' is scheduled, which would allow banks to participate directly, selling the gilts that they hold to the banks.
These auctions will be held every Monday and Wednesday from now on, and the results of the auctions will be published by the Bank every Friday at 10am.
As the bank has £75 billion in newly-created money to spend, it is thought it will be buying around £5 billion a week on average. However it could increase the size of auctions if the funds are over-subscribed with would-be sellers.
The success of the quantitative easing will depend on the extent of which banks are willing to lend the new money, economists have said.
(JM/BMcC)
The Bank's Monetary Policy Committee (MPC) has embarked on "quantitative easing" - the process of printing money - in an attempt to boost credit supply and encourage greater lending again from the banks and institutions.
It has also begun offering to buy £2 billion of government bonds - or gilts - from individuals and investment institutions, in the first of a series of auctions which will take place this week.
The MPC hopes those who sell the gilts will place the new money into their accounts with UK banks. This in turn would boost deposit bases and allow them to lend to individuals or companies.
The bank will buy up the bonds through its Asset Purchase Facility, financed so far by the sale of Treasury bills.
The first auction was scheduled to take place at midday today, and two hours later the second so-called 'reverse auction' is scheduled, which would allow banks to participate directly, selling the gilts that they hold to the banks.
These auctions will be held every Monday and Wednesday from now on, and the results of the auctions will be published by the Bank every Friday at 10am.
As the bank has £75 billion in newly-created money to spend, it is thought it will be buying around £5 billion a week on average. However it could increase the size of auctions if the funds are over-subscribed with would-be sellers.
The success of the quantitative easing will depend on the extent of which banks are willing to lend the new money, economists have said.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
16 April 2007
Machete loan shark described as "parasite"
Consumer Minister Ian McCartney has welcomed the jailing of a loan shark "parasite" who kidnapped a customer and beat him with a baseball bat before cutting him with a machete.
Machete loan shark described as "parasite"
Consumer Minister Ian McCartney has welcomed the jailing of a loan shark "parasite" who kidnapped a customer and beat him with a baseball bat before cutting him with a machete.
26 July 2005
'Loan shark hunters' make first catch
A loan shark who made around £800,000 by targeting vulnerable people has been jailed after becoming the first person to be caught by a new government funded team of loan shark hunters.
'Loan shark hunters' make first catch
A loan shark who made around £800,000 by targeting vulnerable people has been jailed after becoming the first person to be caught by a new government funded team of loan shark hunters.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
08 June 2006
Warning on buying tickets online issued
Music fans have been warned about the risks of buying in-demand tickets through unofficial channels on-line by Consumer Direct.
Warning on buying tickets online issued
Music fans have been warned about the risks of buying in-demand tickets through unofficial channels on-line by Consumer Direct.
04 March 2013
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
