Bank of England refrains from further QE stimulus

No more quantitative easing (QE) stimulus programme, which has injected £375bn into the UK financial system.

Under QE, the Bank creates money and uses it to buy government bonds to try to stimulate the economy.

The Bank’s Monetary Policy Committee (MPC) also decided to keep interest rates at 0.5%, the record low they have been held at since March 2009.

The UK came out of recession recently, growing 1% between July and September.

The strong rebound, which was helped by tourist spending during the Summer Olympics, followed nine months of modest economic contraction.

However, recent data suggests the economy remains finely balanced between growth and recession. Retail sales were revealed last month to have fallen a faster-than-expected 0.8% in October.

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