Bank of England Keeps Rates Unchanged

The Bank of England’s monetary policy committee voted on Thursday to keep its key rate on hold at half a percentage point and to press ahead with its £125bn asset purchase programme as planned.

The decision to hold both conventional and unconventional monetary policy steady comes against a backdrop of more optimistic official data and surveys which, added together, suggest the economy is past the worst of the recession.

In a brief statement, the MPC said it expects its asset purchase programme to take another two months to complete. It also said it would keep it under review”.

Some economists had suggested that if lending to the private sector fails to pick up, the Bank may expand the programme to the full £150bn initially authorised even if other economic and survey data show an improving economic outlook

Bank of England Keeps Rates Unchanged, Financial Times
6/4/2009 10:13:49 AM