The Bank of England’s Monetary Policy Committee (MPC) has received permission from Chancellor Alistair Darling to commit another £25 billion ($41.2 billion USD) to the country’s stimulus spending program. £175 billion ($288.6 billion USD) has already been allocated.
When writing to the Chancellor to explain the need for further stimulus spending, Governor King noted that the economy is on the verge of recovery, stressing the need for continued spending:
“Households have reduced their spending substantially and business investment has fallen especially sharply. A number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.”
The Bank also left interest rates at the current 0.5 percent.
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