Bank of England resorts to drastic measures to prevent recession in UK

Bank of England

The Bank of England (BoE) have decided to take drastic actions to stop the UK entering a recession by cutting interest rates from 0.5% to 0.25% and pushing billions of newly created money into the economy. This is the lowest level interest rate cut in the institution’s history of 322 years.

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UK still in uncertainty as Bank of England eases bank rules

UK still in uncertainty as Bank of England eases bank rules

Mark Carney, the Bank Governor , said “The UK is in a time of uncertainty and significant economic adjustment.” The BoE was in the process of building bank balance sheets but have now had to reverse their policies. They will reduce the amount of capital that banks must hold by £5.7 billion. This will raise the banks’ capacity to lend to UK households and businesses by up to £150 billion.

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US Dollar falls after Weak Economic data

The US dollar fell downwards against its major rivals after a series of disappointing economic data that came from US. Additionally, jobless claims rose to 339 000, missing the median expectation for January of 330 000. Previously the US currency has jumped up against the Australian dollar after unemployment in Australia reached its highest rate in a decade. According to the recent statistics, the Australian economy lost 3700 job during the first month of 2014. The Aussie went downwards after the unemployment in Australia increased to 6% in January, despite the…

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