Bank of England accelerates asset buying
August 6, 2009
The Bank of England kept its commercial bank lending rate at 0.5 percent Thursday, but said it would increase its asset purchasing plan to $294 billion.
The bank added $84 billion to the program, though there have been increasing signs that output in the UK’s main export markets is stabilizing,
the bank said in a statement.
The central bank said financial markets had improved a little “¦ although financial conditions remain fragile.
Confidence in business conditions has picked up, albeit from the very low levels experienced in the wake of the financial crisis last autumn.
June’s inflation rate of 1.8 percent came in below the bank’s 2 percent target rate, but Britain’s recession proved deeper than previously estimated, the bank said,
Source: upi