Bank of England governor fears crisis is 'worst ever'

Bank of England governor Mervyn King has said this financial crisis could be more worst the UK has ever seen.

He passed His comments after the Bank authorised the injection of a further £75bn into the economy through quantitative easing (QE).

"This is the most worst financial crisis we've seen at least since the 1930s, if not ever," governor said

Despite criticizing the use of QE in the past, Chancellor George Osborne said it was now the right move to make.

The Bank has already injected £200bn into the economy, under the previous Labour government.

It has done this by buying assets such as government bonds, in an attempt to boost lending by commercial banks.

Mr Osborne also said he is agreed King's view on the severity of the financial crisis.

Bank of England injects further £75bn into economy

The Bank of England has said bank will inject a further £75bn into the economy through quantitative easing (QE).

The Bank has already invested £200bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks.

First time it has added to its QE programme since 2009. There have been recent required for it to step in again to aid to the Economy.

At 0.5% interest rates at the record low is held by bank.

On Wednesday, data showed the UK economy grew by 0.1% between April and June, which was less than previously thought.

"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 reduce the 2% target in the medium term.

"This injection will shift in the balance of risks, and in order to keep inflation on track to meet the target over the medium term, the committee feel need that more monetary funds required to inject further monetary stimulus into the economy."

Sterling fell by almost two cents after the announcement to $1.5280, its lowest since late July 2010.