Base rate 0.5%; Bank unveils £75bn quantitative easing plan

It then revealed it would expand the amount of money in the UK economy by £75bn, via a process known as quantitative easing, in an attempt to boost bank lending. The UK has never implemented a plan of this type before but central Bank chiefs hope increasing the amount of money in circulation will revive the economy. Quantitative easing does not involve printing new money and, instead, will see the Bank buy assets - such as corporate bonds and government securities (gilts). It will create cash "out of thin air" to buy the assets, thereby boosting the balance sheets of UK companies and,...