May 7, 2009
BOE to extend money printing program
The Bank of England said Thursday it would increase its program of printing money by $75 billion to pump more money into the economy.
The practice of printing money involves purchase of corporate and government bonds, essentially
IOUs form the Treasury and business, The Times of London reported.
The bank, which has already invested about $70 billion into the program, said it would extend the
quantitative easing scheme for three months. The bank's key, bank-to-bank interest rate would remain at the record low of 0.5 percent, the lowest rate in the bank's 315-year history, The Times said.
The bank's Monetary Policy Committee said the economy's
pace of decline has begun to moderate, but warned the global economic picture
remains in deep recession.
World productivity was expected to drop
precipitously, the committee said.