Bank of England has announced that it is going to keep the interest rates low again, in order to overcome the deficits and also the losses that might have happened during all these months of hardships. Moreover, the idea is to provide less money so that people get encouraged to spend more and thus there would be a healthy distribution of funds in the market and society.

Mervyn King has planned to pump in about £75 billion into the system but that seems quite doubtful now. Thus, Bank of England might continue its policy f flooding the economy of UK with money. This is a great move indeed when there is absolutely no money in the economy and Britain is doing just as bad as Zimbabwe might be.

Moreover, the Pound has suffered a lot against the Euro and it is time to fight back, if the Sterling has to survive. External members of the bank such as Tim Besley and David Miles have voted for the bank’s policy of quantitative easing £75bn to £200bn in an attempt to make economic recovery. It would be interesting to wait and watch what might happen.

Via: Guardian