News Column

BoE Keeps Rates On Hold; QE At GBP 375 Bln

July 10, 2014

LONDON (Alliance News) - The Bank of England on Thursday kept its interest rate at a historic-low and the size of quantitative easing at GBP 375 billion as widely expected by economists.

The Monetary Policy Committee governed by Mark Carney voted to leave the key bank rate unchanged at 0.50%. The rate has been at the current 0.50% since March 2009.

The panel also decided to maintain the asset purchase programme at GBP 375 billion. The previous change in asset purchases was in July 2012, when it was raised by GBP 50 billion.

The minutes of the meeting will be released on July 23. Given the shift in the BoE's rhetoric over recent weeks, James Knightley, an economist at ING Bank said he suspects that the August BoE forecast update could lead one or two MPC members possibly voting in favor of a small rate hike next time.

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Source: Alliance News

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