BARNSLEY & Rotherham Chamber has welcomed the Bank of England’s announcement that it will inject a further £75 billion into the UK economy through the quantitative easing (QE) mechanism.
QE means the pumping of money into the circular flow of the economy and has been used as one of the flagship measures which the Bank of England has adopted since the inception of the world recession in 2008.
The Bank has already pumped £200 billion into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks.
The monetary package of low interest rates coupled with an extension of the QE programme is hoped will increase lending by banks and stimulate business and consumer demand.
Dominic Beck, Senior Policy Advisor at the Barnsley & Rotherham Chamber of Commerce, said: “The decision to increase the quantitative easing (QE) programme this week by the Bank of England is a thoroughly welcomed move.
“However this week’s announcement will not be effective in isolation and policies must be adopted to ensure the injected money is not hoarded on the balance sheets of city banks but are made available for businesses to access through the lending of credit.
“The extension of the QE programme is a positive measure by the Bank of England, this needs to be matched with some leadership on the fine elements of the economy from the Government.”