Business Secretary Vince Cable questions £50 billion cash injection

Thumb_richard-edgar

The Bank of England and its eurozone counterpart today took emergency action to breathe life into their struggling economies.

The Bank of England has pointed at the Euro zone as being one of the main reasons for weakness in the UK.

Major banks around the world have also acted and the European Central Bank took rates in the Euro zone down to record lows.

There is evidence that the slowdown is also spreading to the United States and China.

Customers in the eurozone are buying fewer exports from the US.

World banks are sharing concerns of a global slowdown.

The general feeling tonight is that Central bankers have done their bit and it's up to the politicians to do theirs.

The Bank's quantitative easing programme now stands at £375 billion.

The increase in QE will come as a blow for pensioners whose annuity rates are hit by the money printing, while the continued low interest rates will hurt savers.

Recent research from accountancy network UHY Hacker and Young found that record low interest rates combined with the Bank's emergency support measures are causing savers to lose nearly £18 billion a year.