British Money Printer Goes BRRR: Bank to Buy USD 125bn of Bonds
The Bank of England – the UK’s central bank – has sent its money printers into full BRRR mode, agreeing to essentially create USD 125 billion worth of pound sterling as the coronavirus pandemic continues to disrupt the British economy.
Per the BBC, the bank’s nine-member governing council voted 8-1 to increase the size of its bond-buying program.
The British economy has taken a relentless battering in recent months, with months of lockdown causing hundreds of thousands of job losses – and shrinking the economy by over 20% last month.
The council – the Monetary Policy Committee – also decided to freeze UK interest rates at their record-low level of 0.1%.
The committee wrote, in its meeting minutes,
“While recent demand and output data had not been quite as negative as expected, other indicators suggested greater risks around the potential for longer-lasting damage to the economy from the pandemic.”
The move comes weeks after the EU’s European Central Bank (ECB) expanded its own bond-buying program by USD 680 billion.
Widespread fiat inflation is now looking highly likely in Europe – as well as many South American countries like Argentina.
With investors flocking to find “safe havens,” crypto adoption, stock investments and gold-buying could be set for a spike – as per the forecasts of a number of crypto and conventional finance experts.