Drastic measures needed in the banking sector

Story link: Drastic measures needed in the banking sector

The Bank of England has taken some drastic measures since October to try and stabilise the UK economy, as well as saving the banking sector.
The problem is, the various interest rate drops and cash injections into bank havn’t made any direct gains for the UK, so they may have to ease monetary policy in the short term to regain stabilisation.

Drastic measures needed in the banking sector

The Bank of England will probably have to ease monetary policy further to get the British economy growing again and inflation back up to target, possibly by buying gilts to boost the money supply, Governor Mervyn King said on Wednesday.
Interest rates did not have to fall to zero first, he said, signalling that the Bank’s Monetary Policy Committee could vote to start quantitative easing — where a central bank raises the monetary base to support the economy — as soon as next month.