More funds to be pumped into economy
Updated on 09 July 2009
The Bank of England is set to pump an extra £25bn into the recession-blighted UK economy today, but keep interest rates at the same level.
The rate-setting Monetary Policy Committee (MPC) is expected to vote to step up its quantitative easing programme - effectively printing more money - while holding interest rates at their record low of 0.5 per cent.
The expansion of quantitative easing would take the MPC to the £150bn limit permitted by the Chancellor, and it may also ask to extend the strategy further.
The latest meeting of the MPC comes amid recent signs over the fragility of the UK's attempts to haul itself out of recession.
According to the Bank's own data, credit conditions remain tight and lending to business fell in April and May, suggesting that the boost to the money supply is having little immediate impact.
