First round of quantitative easing underway

Today's auction is the first in a series of quantitative easing measures, with around £75bn expected to be spent on gilts in the next few months. The action is the first time quantitative easing has been tried in the UK, though Japan adopted similar measures in the 1990s in an attempt to stop deflation. The first two hours will allow institutional and individual investors to sell their gilts for cash, which policymakers hope will inject new capital into the economy. Following the first stage of the auction, banks will then be able to sell their government bonds. Results of the auctio...