Quantitative easing

Quantitative easing has never been tried before in the UK, but with interest rates currently at 0.5%, the lowest level in the Bank of England's 315-year history, it is believed that banks are still not lending at a sufficient level to revive economic growth and consumer spending. Lower interest rates is normally the primary method used by a central bank to try to raise the amount of lending and activity in the economy indirectly as lower rates tend to encourage people to spend as opposed to save. However, with interest rates at such a low level the Bank of England has had to look for alt...