* Its aim is to get money flowing around an economy when the normal process of cutting interest rates isn't working - most obviously when interest rates are so low that it is impossible to cut them further.
* The central bank does not actually print money, it simply increases the size of banks' accounts at the central bank, known as 'reserves' giving the banks the boost.
* Bank swap their securities such as government debt, mortgage-backed securities or even equities, for these reserves.
* Theoretically the increase in the money balances held by the banks lead to an increase volume of lending.
* Experts differ as to whether policy will work, but say that with interest rates already at one per cent and the economy in recession, the BoE has no other ammunition left.
* The Bank of England's MPC will vote on QE on 12th March and is expected to start the process very soon.
Video: QE explained in 108 seconds - click.
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