Quantitative easing: Bank of England set to spend £100 billion to stimulate economy
Following the £645 billion already spent by the Bank of England in an attempt to resuscitate the British economy, it has announced it will be spending another £100 billion in bonds to further the investment into quantitative easing.
A meeting of the Bank's Monetary Policy Committee voted eight to one to raise the amount that will be pledged to help the UK economy into recovery.
New governor Andrew Bailey announced just days ago that he and the Bank were "ready to act", stating that the country was still "very much in the midst of [the crisis]".
He said policymakers at the bank were "ready to take action", and this extra £100 billion appears to be just that.
The economy shrunk by over 20 per cent in April 2020, but minutes from a recent MPC meeting stated there were indications of a "pick up" in May and June.
"Payments data are consistent with a recovery in consumer spending in May and June, and housing activity has started to pick up recently.
"While recent demand and output data had not been quite as negative as expected, other indicators suggested greater risks around the potential for longer-lasting damage to the economy from the pandemic."
Mr Bailey, however, warned people not to get "carried away" going forward.
"We don't want to get too carried away by this. Let's be clear, we're still living in very unusual times."
With this new investment, coronavirus-related quantitative easing in the UK has now cost the Bank of England around £745 billion.
For comparison, the Bank spent £200 billion in 2009, £375 billion during the Eurozone debt crisis in 2012 and £445 billion after the economy suffered following the EU referendum result in June 2016.