Quantitative easing: how it works

1

The Bank of England prints money

2

This is used to buy corporate and govt. bonds, from banks

3

Interest rates fall

4

Borrowing increases

5

People spend more and businesses create jobs

6

The economy is stimulated

1

The Bank of England prints money

2

This is used to buy corporate and govt. bonds, from banks

3

Interest rates fall

4

Borrowing increases

5

People spend more and businesses create jobs

6

The economy is stimulated