Reserve Bank of Zimbabwe Building at Number 80 Samora Machel Avenue, Harare Coming out of the worst economic and financial crisis that had threatened to destroy the world's financial capital, policy makers in London had to employ an unorthodox set of measures to keep their economy and financial markets afloat. The year was 2009, with Sir Mervyn King at the helm of the Bank of England, the UK`s central bank adopted an aggressive stance toward the economy. The UK`s Monetary Policy Commission decided to slash the country's base rate (the interest rate at which selected specified UK banks can borrow funds from the Bank of England) to a record low of 0,5 % and print money to inject into the economy, using £75 bln worth of quantitative easing (an unconventional type of monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply,) in order to jump-start i...
Economics, Business and Finance