Home Breaking News Bank of England boosts QE by £150bn as lockdown begins

Bank of England boosts QE by £150bn as lockdown begins

by LLB Editor
5th Nov 20 11:34 am

The Bank of England has boosted its quantitative easing stimulus package by £150bn, as policymakers try to protect the economy from the coronavirus pandemic.

The Bank warned that the new restrictions imposed to combat Covid-19 mean the UK economy will shrink in the current quarter. That means Britain would suffer a double-dip downturn this year.

The Bank of England said: “There are signs that consumer spending has softened across a range of high-frequency indicators, while investment intentions have remained weak…

“Developments related to Covid will weigh on near-term spending to a greater extent than projected in the August Report, leading to a decline in GDP in 2020 Q4.”

The expansion of the Bank’s asset purchase scheme is bigger than economists expected, and has been announced as the England’s second coronavirus lockdown begins.

Leave a Comment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]