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Interest Rates Frozen at 0.5%


February 9, 2012

Bank of England freeze Interest RatesBank of England Rates

The MPC has announced today that Interest Rates have again been frozen at 0.5% and the Bank of England will inject (electronically) another £50 billion into the economy.  This is on top of the £275 already injected through the purchase of assets.

The Quantitative Easing Initiative sees the Bank electronically create money which it passes onto Commercial Banks & Institutions in exchange for assets, this money is then spent on such things as shares/property and funding Companies which help jobs.

As this is not good news for savers or people depending on a pension, this should be good news for Businesses and Mortgage owners.

Read more about Quantitative Easing & the MPC’s decision at http://www.bankofengland.co.uk/monetarypolicy/index.htm

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