By Gavin Mackintosh-

The move seeks to aid the post-Brexit situation through quantitative easing. The  bank of England has set aside £10 billion pounds for buying bonds, following an announcement that interest rates will be kept on hold by the Bank’s monetary policy committee this week.

The University of Cambridge has bonds worth £350million, whilst the University of Manchester have bonds worth £300 million and £300million, which will see their bonds bought,  The Times reports.

The move to buy bonds from Cambridge and Manchester comes as a key aspect of the Bank’s £435 billion quantitative easing scheme, where new money is created electronically to boost spending and investment in the economy.  Cardiff and Liverpool are also on the Bank of England’s potential list of bonds to buy.

The banks are considering 337 bonds worth £131 billion. Company debts such as Rolls-Royce, and Vodafone may also be purchased.

Each bond issued by Universities requires the university to pay the bondholder a fixed interest rate until the loaned funds raised reached the maturity date, and the capital is repaid.

Only ‘firms making a material contribution to the UK economy’ were considered for the Bank of England’s bond purchase scheme.

Policymakers also decided to infuse money into the economy through the Bank’s government bond-buying quantitative easing programme . The Federal reserve bank has also been working hard to prevent inflation following the election of President-elect Trump, which had affected markets economically.

However, the economy has remained relatively strong and the MPC is now forecast to end 2016 with rates at 0.25 %. In the US, interest rates are forecast to almost certainly rise this week, as the Fed moves to stave off the threat of higher inflation after the election of Donald Trump as president.

Trump’s infrastructure spending and tax cutting plans are expected to push inflation up faster than previously expected, while the US economy looks healthy enough to withstand an increase in interest rates.

In contrast, the Bank of England is set to keep interest rates on hold this week to keep things steady and stable. Monetary policy- makers for the bank of England are optimistic in the economic growth of the economy, given the performance and resistance it has shown so far since the Brexit vote in June.However, Bank governor, Mark Carney has already cautioned the public to expect sharp rises in costs of living that may not be matched with rises in earnings.