Welcome to WikiWirral, sharing is what we do best.
Forum Stats
12226 Members
65 Forums
72760 Topics
980656 Posts
67 posts in the last 24hrs
Max Online: 7831 @ 8th Apr 2013 4:18pm
Who's Online - Click Me
87 registered (11kendo, 16 invisible), 1786 Guests and 167 Spiders online.
Key: Admin, Global Mod, Mod
Social Media : Follow Us

(Views 7days)This Weeks Most Read
Doris is on her way 1346
Internet Explorer Not Working 417
Is This ART ? 415
Dangerous Tumble Dryers 367
Chef's knife. 365
roofers 265
Wirral Bus Review 265
Aerial engineer 241
USB to wall socket 195
TV wall mount wanted. 187
New General Forums
by venice
Today at 12:10 AM
Nigel Farage speaks at the CPAC.
by snowhite
24th Feb 2017 6:28pm
Is This ART ?
by granny
23rd Feb 2017 9:56am
Wirral track renewal
by snowhite
22nd Feb 2017 2:42pm
New Wirral History
Seeking old pictures of Egerton Street area, Birkenhead
by yoller
19th Feb 2017 7:53pm
TS Indefatigable
by granny
18th Feb 2017 3:32pm
RIP : Chris Kay
by granny
31st Aug 2016 9:25am
Children's home on the Overchurch
by xleahx
26th Apr 2011 7:01pm
423 Archers, Wirral Mark Rake, Wirral, Merseyside
by derekdwc
13th Sep 2009 10:50pm
Forum Tips
Photo Gallery Forums
Birkenhead Transport Museum 24th Feb 2017
fireworks on the Mersey last night
Topic Replies
USB to wall socket
by venice
Today at 10:44 AM
What song are you listening to?
by snowhite
Yesterday at 11:33 PM
St Gabriel's Convent, Liverpool
by cools
Yesterday at 10:56 PM
Croxteth Hall (and park)
by diggingdeeper
Yesterday at 10:08 PM
Patio work
by steamfan
Yesterday at 05:51 PM
Tranmere Rovers
by spinner1
Yesterday at 02:20 PM
2x Brit Floyd tickets 3rd March City entrance
by ambersmum
Yesterday at 10:46 AM
Removal of Shed Timber
by fish5133
25th Feb 2017 10:45pm
Is This ART ?
by Greenwood
25th Feb 2017 7:06pm
M Tu W Th F Sa Su
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28
Recent Posts : What's On ?
Croxteth Hall (and park)
by diggingdeeper
Yesterday at 10:08 PM
Lion Salt Works/Weaver Hall Museum
by venice
19th Feb 2017 12:19pm
Topic Options
Rate This Topic
#298025 - 5th Mar 2009 10:06pm Bank to pump £75bn into economy

Bank to pump £75bn into economy

The Bank of England is to create £75bn of new money in an attempt to revive lending and the battered economy.

Bank Governor Mervyn King said the policy - called quantitative easing - was about pumping money into the wider system rather than simply to the banks.

He said the approach would "eventually work" but admitted it was unknown how long it would take to have an effect.

The approach, untried in the UK, was unveiled as the Bank cut interest rates from 1% to 0.5% - a fresh all-time low.

Interest rates have now been reduced six times since October, and the latest cut was expected.

Mr King insisted that increasing the amount of money in circulation was not an "experiment".

"Nothing in life is ever certain, but these measures we think will work in the long-term," Mr King said.

"I don't know how long it will take, much depends on the situation in the rest of the world. But if countries work together, these measures will I believe eventually work."

Chancellor Alistair Darling said that increasing the supply of money was "absolutely essential" in order for the UK to recover from the recession.

He acknowledged that the latest rate cut would be a blow to savers who faced another drop in the return on their money but said "the key thing for each and every one of us is to ensure we get the economy moving to help people and to help businesses grow".

Buying assets

Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.

While the Bank will initially add £75bn, Chancellor Alistair Darling has given it permission to extend this to up to £150bn.

The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend.

Quantitative easing is sometimes incorrectly referred to as printing money, but the Bank will not expand the supply of money by making new banknotes.

Instead, it will buy assets - such as government securities (gilts) and corporate bonds.

Similar measures were implemented in Japan at the beginning of the decade and are considered to have had limited success.

'Pleasantly surprised'

BBC economics editor Stephanie Flanders said that while the initial size of the quantitative easing scheme was smaller than some analysts had expected, "it's a lot more than dipping their toes in the water".

"Those who feared that the Bank would defeat the purpose of the policy by doing it only half-heartedly may be pleasantly surprised," she said.

Philip Shaw, chief economist at Investec, said that quantitative easing "should in principle encourage the banks to lend to private sector agents such as households and businesses, stocking monetary growth and stimulating activity".

Mr King sought permission from the Chancellor to start quantitative easing in a letter on 17 February.

In his reply, Mr Darling said that in the "current circumstances" the measures were now "appropriate". Both letters were released on Thursday.

Meanwhile, Shadow chancellor George Osborne said about the measures: "I don't think anyone should be pleased we have reached this point. It is an admission of failure."

Liberal Democrat Treasury spokesman Vince Cable said that increasing the amount of money flowing into the economy was now the "only clear option".

"The Government must be careful that this kind of radical action doesn't quickly turn deflation into high inflation," Mr Cable said.

Rate cuts attacked

Business groups have attacked the recent cuts in interest rates, saying they have done little to encourage banks to lend more.

Others argue that they are unfairly hurting the returns of savers.

"Today's decision is a kick in the teeth for savers who will see their already diminished interest payments fall even further," said Adrian Coles, director general of the Building Societies Association.

The Council of Mortgage Lenders (CML) said the latest cut would be a "double whammy for prospective mortgage borrowers".

"This latest cut presents immense challenges for lenders whose margins are already squeezed as a result of previous reductions, leaving little scope to lower discretionary mortgage rates further," said CML director general Michael Coogan.

"Savings are the lifeblood of mortgage lending, and unless lenders can offer competitive rates to savers their ability to offer new mortgages is restricted."

Ian McCafferty, CBI chief economist, said the continuing rate cuts were "becoming less and less effective as a means of stimulating the economy".

"Though this latest cut will help support business and consumer confidence, it is unlikely to have a dramatic impact on the cost or availability of credit," he said.

The Bank has had the room to cut interest rates because inflation has fallen on the back of reduced energy costs.

The most recent official figures showed that consumer prices index (CPI) inflation fell for the fourth month in succession in January to 3%, from December's 3.1%.

However, CPI inflation still remains above the government's 2% target.


National News : Advertising
Click me for more Information......

* * * Julie : LED Lights Supplied and Fitted Free * * *
Now Advertise with WikiWirral.
WikiWirral stats 35,000 Page Views a Day +500 Search Engines.. Click Me
#298034 - 5th Mar 2009 10:40pm Re: Bank to pump £75bn into economy [Re: ]
MGCraig Offline
Forum Veteran

Registered: 16th Apr 2006
Posts: 5488
Loc: Spital
Germany did a similar thing during and just after WWII Im sure....

That didnt do well at all, and its taken them many years to get back to normal crazy



Moderator:  Mod 
Random Wirral Images

Click to View Topic.
Newest Topics
Croxteth Hall (and park)
by diggingdeeper
Yesterday at 10:08 PM
St Gabriel's Convent, Liverpool
by diggingdeeper
Yesterday at 05:58 PM
USB to wall socket
by venice
Yesterday at 01:04 PM
Tranmere Rovers
by cools
25th Feb 2017 9:17pm
Removal of Shed Timber
by Julie64
25th Feb 2017 1:31pm
For Sale & Free
Blaupunkt 32" tv
by jaylow
25th Feb 2017 3:04pm
2 x Sum 41 tickets Manchester 25/02
by turnip
24th Feb 2017 7:47am
Sony Smartwatch 2
by Mike_Hoylake
23rd Feb 2017 9:25pm
Brother printer
by saltytom
23rd Feb 2017 11:02am
Mk6 Golf TDI 1.6
by Cjoshea
22nd Feb 2017 11:05pm
Featured Member
Registered: 1st Oct 2016
Posts: 4
Newest Members
catchthepigeon_, Scoobyp1, Bradshawbatho, raybb, CliveK
12226 Registered Users
Today's Birthdays
tommybarry (70)
New Wirral Info
Croxteth Hall (and park)
by diggingdeeper
Yesterday at 10:08 PM
Removal of Shed Timber
by Julie64
25th Feb 2017 1:31pm
Aerial engineer
by ponytail
23rd Feb 2017 6:01pm
by thisledous
23rd Feb 2017 4:44pm
Lion Salt Works/Weaver Hall Museum
by paxvobiscum
18th Feb 2017 9:19pm
News : New Topics
Wirral Bus Review
by Norton
24th Feb 2017 11:42am
Dangerous Tumble Dryers
by diggingdeeper
23rd Feb 2017 2:03pm
Doris is on her way
by granny
22nd Feb 2017 8:43pm
by venice
17th Feb 2017 11:15am
On-street parking charges dropped
by oldpm01
15th Feb 2017 9:10am
New Enthusiast Forums
St Gabriel's Convent, Liverpool
by diggingdeeper
Yesterday at 05:58 PM
USB to wall socket
by venice
Yesterday at 01:04 PM
Tranmere Rovers
by cools
25th Feb 2017 9:17pm
Chef's knife.
by Beethoven
23rd Feb 2017 12:39pm
irish music entertainer for St Patrick's night
by kazaroo
22nd Feb 2017 3:07pm
(Views 24hrs)Trending Newest Topics
USB to wall socket 195
St Gabriel's Convent, Liverpool 33
Croxteth Hall (and park) 16
Story 11
Birkenhead Transport Museum 24th Feb 2017 9
Wirral Sunrise Sunset
Sunrise Mon 7:02am
Sunset Mon 5:47pm
Local Time Mon 11:52am
WikiWirral Can . . . .
Advertising Click me
To Advertise with
Wikiwirral Click Me