Could more stimulus be on the way?

7th June 2012

According to a report in the Sunday Times (paywall), economists are predicting that the bank will inject £50bn into the economy through its asset-purchase program, while there is growing speculation that the record low interest rate of 0.5% could be cut even further to 0.25%.

The calls for more quantitative easing has been growing in some quarters after the Office for National Statistics said the recession that began in the first quarter was deeper than it initially thought, with the economy shrinking by 0.3% in the first quarter of the year and not the 0.2% as it previously estimated.

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