Bank of England Money Supply: Printing £50bn more

The radical programme of printing money by The Bank of England is expected to continue today by a further £50b, as the country fights against the deepest downturn for decades.

Mervyn King, the Bank’s Governor and the rest of the Monetary Policy Committee will extend the total size of the plan, to £225bn this is known as quantitative easing (QE). The plan, was adopted in February by the MPC, has seen the Bank buy billions of banks of UK government bonds, or gilts, from financial institutions in the hope the money spent will be invested in the wider economy.

Experts can not decide if policy is working, but with the economy still languishing in recession last quarter, most reckon it’s worth expanding. George Buckley, an economist at Deutsche Bank said” It is a lot of money, but if it does restart the economy and gets it moving again then it’s worth it.” If the Bank of England does go ahead with this plan it will bring the total to £225bn matching the size of the Greek economy.

To read more on this story go to telegraph.co.uk. Tell us what you think of the Bank of England’s plan.