[KevO]

I'm told this move will de-value your money so if you had £10,000 saved, once more money is printed that £10,000 become worth only say £5000. So the prudent move is to withdraw all monies?
Is that what happens?
someone please explain

The Bank of England is expected to cut interest rates to a fresh all-time low and start increasing the money supply in an attempt to revive the economy.

Most analysts believe the Bank will cut rates to 0.5% from 1%. An announcement is due at 1200 GMT.

As rates get closer to zero, the Bank runs out of room to cut the cost of borrowing to stimulate the economy.

As a result, economists suggest that it will opt to expand the money supply by up to £150bn ($212bn).

http://news.bbc.co.uk/1/hi/business/7924234.stm

[Daniel_Plainview]

Strictly speaking, this is not a naked "printing of money":

The Bank is unlikely expand the supply of money by just printing banknotes. It would buy assets - such as government securities (gilts) and corporate bonds - without borrowing to fund the purchases, in effect boosting the money supply. The policy is called quantitative easing. Similar measures were implemented in Japan at the beginning of the decade and had limited success.

[Jotapay]

This is the same as quantitative easing, no? It is unsterilized money creation.

[PWALPOCO]

UK and Euro rate cuts - BBC News

The European Central Bank (ECB) has cut its key interest rate to 1.5% from 2.0%, the lowest since it started setting euro rates in January 1999.

It followed a cut in UK rates by the Bank of England (note: from 1.0% to 0.5%). US and Japanese rates are, in effect, already at zero.

At a news conference, ECB president Jean-Claude Trichet slashed his forecasts for eurozone growth.

The ECB is now predicting GDP this year in the 16-nation bloc will shrink by between 2.2% and 3.2%.

Its last prediction, made in December, was that growth would be between no change and a fall of 1% in 2009. For 2010 it was predicting growth of between 0.5% and 1.5%. It is now forecasting growth of between 0.7% and minus 0.7%.

All the central banks are running out of ammo !!

Paul

[heroineworshipper]

Heh. The more your government prints, the less I lend, so you're stuck. Credit is very democratic, isn't it.

[idiom]

The idea is not just to withdraw all your savings but to spend it really quickly.

Hopefully the velocity of money will shoot through the roof causing a huge bubble, frenzied hyper-inflation and eventually saving the world.

Oh wait.

[Serial_Worrier]

It's useless to withdraw funds as cash. That paper will depreciate just as well as the numbers in a database. Inflation hedge is to withdraw funds and invest in precious metals, ammo, food, doomstead.