Bank of England Printing Money

In an effort to keep interest rates low, the Bank of England will pump another 50 billion pounds into the economy. The U.S. currency equivalent of close to $80 billion to be injected is an attempt to stave off another potential recession.

Pound SterlingAdditionally, the Bank of England will keep interest rates at 0.5 percent to turn around a shrinking economy. Over the past year, England has seen growth in manufacturing and improved industrial production, much like the U.S.

The decision was made in light of a diminished threat of inflation. Economic inflation has dropped from a high of 5.2% in the Fall, to 4.2% in December. Many economists expect inflation to fall below 2% at some point in 2012. Still, the top economist at the Bank, Spencer Dale, suggested that the decline may not be as precipitous as some expect.

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