BoE pumps further £50bn into UK economy

Date: 10th February 2012

The UK is set to be given an economic boost after the Bank of England (BoE) announced that it is to extend its quantitative easing (QE) stimulus.

BoE officials revealed that an extra £50 billion will be pumped into the economy, taking the total of the QE programme to some £325 billion.

This could come as good news to a number of small business operators as access to finance could ease with more money available to banks.

A statement from the Bank explained: "The underlying pace of recovery slowed during 2011, with activity falling slightly during the final quarter.

"Some recent business surveys have painted a more positive picture and asset prices have risen. But the pace of expansion in the UK's main export markets has also slowed and concerns remain about the indebtedness and competitiveness of some euro-area countries."

The Bank's Monetary Policy Committee also voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 per cent.