A couple of important decisions were made during a meeting of the Monetary Policy Committee in June. The Committee, commonly referred to as the MPC, is the board of interest setters for the Bank of England. With the current interest rates set at 0.5 per cent, the MPC decided not to alter the interest rates anymore for the time being.

The MPC also decided not to make any changes to the quantitative easing programme at this time. The plan current currently stands at £125 billion . A quantitative easing plan was introduced as a way to stimulate the economy by infusing more money into the national money supply. With this plan, the bank buys both corporate and government bonds from other financial institutions. The bank uses money that has been created electronically to make purchases. That money is then used by those who have sold the bonds, thus adding new money to the economy.

The MPC now thinks that the economic status for England is looking much more hopeful for the year than originally anticipated. This is welcome news for both businesses and consumers. Improvements are also being seen in the housing industry which was not expected. The upturn in the housing market might be due in part to the low interest rates that are currently available. As conditions in the housing market improve, this will boost the economy even more.

It appears that the asset purchase programme is helping to improve the economy. So far it seems that the programme is without a doubt accomplishing what it was intended to accomplish for the good of the economy. Although the Monetary Policy Committee does not want to get people's hopes up too much too soon, they are hopeful that things will continue to improve in the months to come.

Get in touch with Clear Property Investments to get the best advice and deals on Buy to Let property today!

View other news from August 2009