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.
Additionally, 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.