Bank of England Pumping £150bn into the economy

Andrew Bailey the Governor of Bank of England has vowed to do “everything we can” to support the economy amid a resurgence of Covid-19 and said It was important that policymakers acted “quickly and strongly”, as the Bank announced a further £150bn of support, as lockdown could lead to a slower and bumpier recovery.

The Bank expects the economy to shrink by 2 per cent in the final three months of 2020, before bouncing back at the start of 2021, assuming current restrictions loosen.

Many diners had stopped going to restaurants after the end of the Eat Out to Help out Scheme. The Bank said more than a third of people still felt uncomfortable dining in. The Bank expects the economy to shrink by 11 per cent in 2020.

The Bank of England who is in charge of the UK’s money supply, will create new money electronically and the Bank spends most of this money buying government bonds through a process known as quantitative easing (QE).