Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 22, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


1

UK Drops Rates to 0.5%, Begins 'Printing Money'

Quantitative easing begins with $108B of new money

Share

(Newser) – The Bank of England cut interest rates today by 50 basis points to an all-time low of 0.5% and began a far more drastic process: quantitative easing, or "printing money." The Times of London reports that the Bank received permission from the government this morning to spend $106 billion of newly created money buying up government and corporate debt. The UK's central bank recently revised down already glum growth forecasts, and many economists expect no growth this year.

Alistair Darling, the British chancellor, gave permission to the Bank of England to 'print' money in a letter today to the Bank of England.
Alistair Darling, the British chancellor, gave permission to the Bank of England to 'print' money in a letter today to the Bank of England.   (AP Photo/Lefteris Pitarakis)
The Bank of England cut rates to 0.5% and began the process of quantitative easing, also known as 'printing money.'
The Bank of England cut rates to 0.5% and began the process of quantitative easing, also known as 'printing money.'   (©austinevan)
The Bank of England cut rates to 0.5% and began the process of quantitative easing, also known as 'printing money.'
The Bank of England cut rates to 0.5% and began the process of quantitative easing, also known as 'printing money.'   (©MuLaN%u2122)
The Bank of England cut official interest rates to a record low of 0.5 percent, the sixth consecutive month that the central bank has lowered interest rates.
The Bank of England cut official interest rates to a record low of 0.5 percent, the sixth consecutive month that the central bank has lowered interest rates.   (AP Photo/Sang Tan)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
1 comment
VIEWING:
 
Snowleopard
Mar 5, 09 2:30 PM CST
How about instead of buying debt with it, you start injecting the money into the economy from the bottom up, so home owners can start paying off their mortgage. To just buy up all this bad debt it plain dumb, because unless you address people's ability to pay their loans, there's just going to be more defaults and bad debt created later on. Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

27 Stories

Brown Likely to Hang On to Power

In reshuffle, British PM invites Apprentice host to join government

Jun 5, 09 8:18 AM CDT
(Newser) - Gordon Brown looked set to hang on to power this morning, despite the shock resignation of yet another minister who called on him to step down. James Purnell, a young Blairite, quit the Cabinet seconds after polls closed in last night's election, forcing Brown to bring forward a planned government... More »

MORE ABOUT:
United Kingdom • Gordon Brown • British Cabinet • Labour Party • Alistair Darling • Blairites • Alan Johnson • The Apprentice

UK Expenses Scandal Hits Alistair Darling

Govt's No. 2 claimed 2 houses at same time, may be demoted

Jun 1, 09 6:52 AM CDT
(Newser) - Britain's ongoing political expenses scandal reached all the way to the second-highest post in government today, after the Telegraph broke news that Chancellor Alistair Darling reportedly expensed the service charge on a South London apartment he was renting out while also claiming allowances on his Downing Street house. Though he... More »

MORE ABOUT:
United Kingdom • British Parliament • Gordon Brown • Alistair Darling • Chancellor of the Exchequer • inappropriate expenses • expenses

UK Forking Over
$60M to Bail
Out Charities

Nonprofits fear reduced services for homeless, unemployed, families

Feb 9, 09 5:21 AM CST
(Newser) - The British government will bail out the nation's charities with a $60 million lifeline, as experts warned that one in three nonprofits may have to lay off staff, reports the Guardian. While the charities welcomed the bailout, it is far less than the $150 million they requested to maintain vital... More »

MORE ABOUT:
United Kingdom • homeless • charity • nonprofit • Alistair Darling • bailout

27 Stories


How does quantitative easing work?
Financial Times (UK)


Business 
TwitterFollow @NewserBusiness on Twitter

 
United Kingdom • central bank • Bank of England • Alistair Darling • interest rate cut • quantitative easing

from our news partners

Associated PressAssociated Press