Bank of England pumps extra £25 bln into economyThe Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. announced on Thursday that it will pump another 25 billion pounds into the recession-hit economy, after it held interest rates at a record low. "The BoE's Monetary Policy Committee today voted to maintain the official bank rate paid on commercial bank reserves Bank reserves are banks' holdings of deposits in accounts with their central bank (for instance the European Central Bank or the Federal Reserve, in the later case called federal funds), plus currency that is physically held in bank vaults (vault cash). at 0.50 percent," the central bank said in a statement. "The committee also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves and to increase its size by 25 billion pounds to 200 billion pounds," it added. The asset purchase programme is more commonly referred to as quantitative easing Quantitative easing was a tool of monetary policy that the Bank of Japan used to fight deflation in the early 2000s. The BOJ had been maintaining short-term interest rates at close to their minimum attainable zero values since 1999. . Under QE, the central bank buys bonds from commercial institutions to try and boost lending to businesses and individuals. The BoE added Thursday that it would take three months to complete the additional asset purchases, while the scale of the programme would be kept under review. The central bank also noted mounting signs of a tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. global economic recovery in a statement explaining its decision. "The world economy has shown signs of recovery, with a number of emerging market economies experiencing a strong rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in growth, although global activity as a whole remains significantly depressed," the BoE said. "Asset prices have risen internationally since the spring, reflecting both the gradual improvement in the economic climate and accommodative monetary policies Accommodative monetary policy Federal Reserve System policy to increase the amount of money available to banks for lending. See: Monetary policy. accommodative monetary policy . "And banks' funding conditions have improved, though financial conditions remain fragile." 
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