The Bank of England has announced that it is now beginning the printing process to pump over £50billion into the economy as a part of the continuing development of Quantitative Easing (QE) designed to drag Britain out of the depths of recession.
The official announcement declares that QE will begin pumping the economy as early next month, a move which will no doubt be welcomed with open arms by the UK’s business sector as it struggles to withstand the immense strain. The rate of business owners failing to maintain payments on commercial mortgages and business loans is rising rapidly as British economy continues to struggle and suffers as a result of the ripples released by the continuing EU crisis.
The shift in the Bank’s thinking may also see interest rates be cut further to 0.25% however not all will welcome the attempts to boost the economy with open arms. As the monetary committee begins to pump the economy; Britain’s savers will suffer immensely with dwindling returns on cash. To date, QE has injected an estimated £300billion into Britain’s economy to provide business and home mortgage owners with the much needed assistance required to stay afloat however pension holders and the stealth of savers have continued to suffer and will no doubt be angered by the latest developments which will see them faced with an increasing tax and dwindling returns.
The further pump of QE may be seen as a blow by a proportion of the population however, there is no doubt that the British economy needs it; for the sake of unilateral success…a few may need to suffer.