06 July 2012
Another £50 billion was pumped into the UK economy on Thursday amid the country's double-dip recession and the eurozone debt crisis.
As the UK struggles to overcome its economic issues, the Bank of England's Monetary Policy Committee (MPC) voted to increase the programme of quantitative easing (QE).
The Bank is effectively printing more money, taking the cash injection to £375 billion from £325 billion. But an all-time low interest rate of 0.5% remains in place.
The QE boost comes as signs of economic deterioration were seen in June.
Surveys indicated that the construction sector took a backwards step, while the powerhouse services sector reported its worst performance for eight months.
The majority of economic experts believe gross domestic product (GDP), which is a broad measure for the total economy, dropped slightly between April and June this year.
Pensioner groups are likely to criticise the QE move, as they have blamed recent drops in retirement incomes on money printing.
Copyright Press Association 2012
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