BoE intends to start quantitative easing

As it became known, Bank of England has cut official interest rates by half a percentage point to a 0.5 % and announced the intention to create new money to buy banks' assets.

On Thursday, as it’s expected, the BoE monthly rate decision includes plans to begin so-called quantitative easing, the technique of expanding the supply of money in the economy.

Bank revealed its intention to purchase 75 billion pound (or $106 billion) of assets over three months by issuing central bank reserves, effectively creating money; this amount is less than it was anticipated by many analysts. 

Last year Britain fell into recession for the first time in nearly two decades and economists warn that the decline could be extended.