'The world is facing a financial crisis the worst'

It is stated the Bank of England on financial crisis facing the world today.

Mr Mervyn King, Governor of the Bank of England issued a statement on the decision to inject 75 billion euros into the economy's monetary policy committee, to prevent a new credit crisis and economic downturn UK.

Mr Mervyn King - Governor of the Bank of England.

According to Mervyn, the bank was forced to act as noticed the more obvious signs of a global economic catastrophe. "This is a serious financial crisis that we've seen since 1930. We have to deal with these very unusual circumstances, but to act calmly and correctly, "Mervyn said.

Notice of its decision, the Bank of England said the debt crisis in the euro area has created "serious tensions in financial markets and credit markets." Therefore, the pumping money into the economy is necessary.

However, financial experts say the move of the monetary policy committee would be a disaster for workers, savers and employees prepare for retirement. However, Mr Mervyn said that's what you need to pay to rescue the economy from recession.

Accordingly, the new money in the bank and use them to buy government bonds or other debt from banks. In theory, the bank will use that cash to organizations and individuals to borrow for production and development.

Meanwhile, critics say this policy will make inflation and discount sterling.

Bank's decision came after political pressure from the Minister concerned that Mr. Mervyn did not react in time with the prospect of a global economy is a bad day.