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- George Osborne, UK Chancellor of the Exchequer
The Bank of England kept interest rates at 0.5 percent, which is a record-low for more than 2 years. The stock of asset purchases at 200 billion pounds was held by the BoE since February 2010, when the UK economy was recovering subsequent to a deep recession.
However, on Thursday the BoE decided to enlarge the asset purchase programme to a total of 275 billion pounds, a decision fol-lowed by the global growth’s slowdown. The asset purchase plan was increased as the UK economy faces government sector reductions and fiscal restructuring, while the consumers couldn’t tackle jumping inflation.
The asset enlargement is to be implemented by injecting 75 billion pounds into the UK economy by purchasing UK government bonds and other private sector assets.