The Bank of England (BoE) has extended its quantitative easing programme by £50bn, in a bid to get the UK economy out of recession.
The Bank's Monetary Policy Committee (MPC) voted today to extend its asset purchase programme to £375bn, over three years since it first started the programme in March 2009.
The additional stimulus comes following yesterday's below-par manufacturing figures, which showed the sector contracted for the second straight month in June, with new orders continuing to decline.
UK GDP fell by 0.3% in the first three months of the year, sending the UK into recession following a 0.3% drop in the previous quarter.
The Office for National Statistics is to release its initial estimate for Q2 GDP figures on 25 July, with another negative print predicted by economists at RBS.
Some forecasters had expected the bank to announce further QE last month, but governor Mervyn King was overruled by colleagues amid fears over ‘sticky inflation' stunting growth.
Consumer Price Index (CPI) inflation is now down at 2.8%, having fallen from April's reading of 3%.
Minutes from the Committee's last meeting in June show five members of the MPC - including Charles Bean and Paul Tucker - opted to maintain QE at its current level.
At that meeting. Mervyn King (pictured), David Miles and Adam Posen opted to increase the programme by £50bn, while Paul Fisher opted for a £25bn expansion.
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