Tel: 0845 458 2633
Quantitative easing arrives
The Bank of England announced another cut in the interest rate to 0.5%. The bank’s most crucial decision though has been its intention to add £75 billion in to the UK’s economy through “quantitative easing” which is another way to describe printing money.
The Bank of England is close to having such a low rating that it will not be able to fully function as a bank as it can not push its rate to below zero. The Governor of the Bank of England, Mervyn King, announced that it would immediately start a period of three months QE and hope it will jump start the economy and avoid a full blown depression.
The bank will begin buying corporate bonds and treasury gilt-edged stock, “gilts” from commercial banks. It will pay for them by electronically created cash which will be paid to the banks and credited to their Bank of England accounts, the banks should be able to make new loans to businesses and consumers backed by the increased funding. The bank will need to monitor the types of assets it buys and ensure they are performing well in order for the policy to be most effective.
The information contained within these news articles may include reference to taxation, legislation, regulation and other issues or concerns that may no longer apply.
Your property may be repossessed if you do not keep up repayments on your mortgage.
For more information on how we are paid for mortgages please click here.Grovelawn Financial Services, 3b Restormel Industrial Estate, Liddicoat Road, Lostwithial PL22 0HD — T: 0845 458 2633
Grovelawn Financial Services is a trading style of Grovelawn Limited
Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
Consumer Credit Licence Number: 573287