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Bank of England pumps another £150bn into economy and keeps interest rates at 0.1%
5 November 2020, 07:45
The Bank of England has pumped another £150 billion into the economy as England enters its second lockdown.
Members of the Bank's Monetary Policy Committee (MPC) voted unanimously to expand its quantitative easing (QE) programme to a mammoth £895 billion, but held rates at the historic low of 0.1%.
It said gross domestic product (GDP) will pick up in the first quarter of 2021, but warned that activity will still remain "materially lower" than before the coronavirus crisis.
The decision came as England began a second national lockdown on Thursday.
Experts fear it could plunge the UK into a double-dip recession, but the Bank's latest forecasts suggests the economy will narrowly avoid this as activity recovers at the start of next year.
Chancellor Rishi Sunak is also expected to outline further government support for the economy to see it through the latest restrictions when he makes a statement later on Thursday.
The Chancellor is to make a statement in the Commons at 11.15am today where is due to announce details for further support to help England get through the second lockdown.