- Bank of England (BoE) prints $196 million to sustain the UK’s failing economy amid a new lockdown.
- The announcement by the BoE came yesterday.
- The push of money into the economy was more significant than most people predicted.
Bank of England prints more money for UK Economy to survive
Bank of England (BoE) prints $196 million to sustain the UK’s failing economy amid a new lockdown. The announcement by the BoE came yesterday.
The push of money into the economy was more significant than most people predicted. BoE’s stimulus of money is there to fuel the buying and selling of bonds.
Governor Andrew Bailey believes that this move to print more money does not mean that the economy will thrive. The $196 million is being injected into the economy via the Bank of England purchasing bonds using the money they printed.
The BoE hopes to see more market demand and the borrowing costs to decrease for the Government. The BoE has had to stimulate the UK economy before because of covid-19.
Bonds are set at an income and represent loans used to raise cash from wealthy investors like hedge funds, endowment funds, and family offices.
Countries worldwide are feeling the pandemic’s effects, and many Governments are having to step in and purchase billions worth of bonds via their capital.
The system of buying back capital is called quantitative easing, which boosts economic activities. Since Thursday, the Government has got a hold of $262 billion bonds this year.
The UK’s debt has inflated and is currently $2.62 trillion. To ensure everyone is taken care of, the UK is pushing its furlough scheme to provide 80% of 9 million citizens’ wages.