- Bank of England is boosting its bond-buying program by £100 billion.
- U.S. national debt is accelerating amid the coronavirus outbreak.
The coronavius outbreak has wrecked havoc on global economies, many of which are frantically pumping money into the economy hopes of economic stimulation. The Bank of England has just announced that it will boost its bond-buying program with an additional £100 billion. This addition brings the overall asset purchases to £745 billion.
The central bank also decided to keep interest rates unchanged at 0.1%, following a unanimous vote by the Monetary Policy Committee (MPC). Similar to many countries amid the pandemic, the UK’s economy has seen better days. The country’s GDP declined by over 20% in April alone as the pandemic forced global economies in lockdown.
U.S. National Debt Skyrockets
The Bank of England is just one of the many central banks around the world collectively pumping in trillions in an attempt to prop-up global markets.
As reported by The Crypto Associate, U.S. national debt has crossed $26 trillion, up over 12% since January alone. Furthermore, the U.S.’s Federal Reserve’s balance sheet has recently passed $7 trillion after growing nearly $3 trillion this year alone.
Quantitative easing is playing a substantial role in the recent surge in the balance sheet. Quantitative easing is a type of monetary policy by which central banks purchase assets from the open market in hopes of economic stimulation. Through quantitative easing, banks are essentially injecting money into the economy.
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