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Quantitative easing in the UK - statistics & facts | Statista

Quantitative easing in the UK - statistics & facts

In response to the economic crisis that has been caused by the coronavirus (COVID-19) pandemic and subsequent global lockdown, countries around the globe have had to take fiscal action in order to mitigate the ongoing financial effects. In March and June 2020, the Bank of England announced hundreds of billions of British pounds in stimulus after cutting interest rates twice since the beginning of the coronavirus pandemic.

What is quantitative easing?

Quantitative easing (QE), otherwise known as asset purchases, are often referred to as a last resort by central banks to stimulate an economy during economic crisis. Spurred on by a sharp decline in business and consumer spending, low or negative inflation and unwillingness by lenders to loan money, quantitative easing looks to inject money directly into the economy in a bid to maintain country inflation targets of two percent. Since QE measures have taken effect, large enterprises in the United Kingdom have jumped at low interest rate loans. In particular, key industries including construction, transport, real estate and manufacturing have all been stimulated into borrowing as of March 2020.

How does QE work?

To enable this, central banks purchase assets in the form of government bonds and to a lesser extent corporate bonds from private sector businesses, including insurance companies, pension funds, banks and non-financial firms. This purchasing of assets increases their price and in doing so reduces their yield, which means a lower return on those assets. In turn, the injection of cash encourages the sellers of these assets to purchase other financial assets such as shares and bonds. The lowering of yields through asset purchases means that the cost of borrowing for businesses and households is reduced, leading to an increase in consumer spending and investments, hopefully putting the economy back on track.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 20, 2023

Key insights

Value of quantitative easing in June 2020
100bn GBP
Cumulative value of quantitative easing in the UK in November 2020
895bn GBP
Bank base interest rate in the UK
4.75%
Get more insights

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Current statistics on this topic

Central bank interest rate in the United Kingdom (UK) from January 2012 to November 2024

Banks

Monthly bank rate in the UK 2012-2024

Consumer Price Index including owner occupiers' housing costs (CPIH) in the United Kingdom from 1st quarter 2000 to 3rd quarter 2024

Key Economic Indicators

CPIH in the UK 2000-2024

M4 money supply in the United Kingdom (UK) from January 2010 to December 2021 (in billion GBP)

Financial Instruments & Investments

Monthly M4 money supply in the UK 2010-2021

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Banking channels in the United Kingdom (UK)
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Small and medium enterprises financing in the United Kingdom
Small and medium enterprises financing in the United Kingdom
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Loan investments in Europe
Consumer lending in the United Kingdom (UK)
Consumer lending in the United Kingdom (UK)
Capital requirements of European banks
Capital requirements of European banks
Coronavirus: impact on the UK economy
Coronavirus: impact on the UK economy

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