Bank to begin 'printing money' to boost economy

 The Bank of England will start pumping newly created money into the economy today by buying £2 billion in gilts as it embarks on "quantitative easing" in an effort to boost the economy.
The central bank, which has already slashed interest rates by 4.5 percentage points to a record low of 0.5 per cent over the past six months, said last week that it would initially pump £75 billion into the economy via twice-weekly gilt auctions, but has permission from Alistair Darling, the Chancellor, to create another £75 billion if it needs to.
Mervyn King, the Governor of the Bank, indicated last week that the Bank would continue this course of action until the lending markets became unglued.

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