The Bank of England has announced it will inject a further £75 billion into the UK economy through quantitative easing (QE).
The Bank will buy more assets like Government bonds, as it did in 2009 when it pumped £200bn into the economy, in an attempt to increase commercial banks’ lending.
Interest rates have also been held at 0.5%.
The Bank said in a statement: “In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated.
"The deterioration in the outlook has made it more likely that inflation will undershoot the 2% target in the medium term.
"In the light of that shift in the balance of risks, and in order to keep inflation on track to meet the target over the medium term, the committee judged that it was necessary to inject further monetary stimulus into the economy."