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Bank Of England Set To Pump £25bn Into The Economy

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The Bank of England’s Monetary Policy Committee (MPC) could announce plans to inject £25 billion into the British economy, research by Reuters suggests.

In a poll of 62 City economists, two thirds expected the MPC to extend its £175 billion quantitative easing scheme and the figure considered most likely was £25 billion.

This prediction follows last week’s revelation that the UK’s economy remains in recession despite the government’s programme of fiscal stimulus, meaning that the country is in its longest period of recession since records began in 1955.

Before undertaking another round of quantitative easing, the MPC would need to consult with the Treasury, which has only authorised the initial £175 billion programme.

While the UK economy remains in recession, things seem to be looking up in the financial services sector, with the Centre for Economics and Business Research (CEBR) suggesting that bonuses will rise in 2010, 2011 and 2012.

With improved prospects for the banking sector, it is likely that more finance graduate jobs will be made available and those with professional qualifications and the right career advice stand to benefit.

Although some analysts fear that another round of quantitative easing could trigger new inflationary pressure, this was dismissed by member of the MPC Adam Posen who said that inflation is not something to be "worrying about" at the present time.ADNFCR-2605-ID-19433670-ADNFCR

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