Bank of England Maintains Bank Rate at 0.5%


The Bank of England, held its key bank rate unchanged as fears about the economy’s ability to pull out of a slowdown in the face of austerity measures outweighed concerns about above-target inflation.

The Bank of England’s Monetary Policy Committee voted on July 7 to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.

The Bank will continue to offer to purchase high-quality private sector assets on behalf of the Treasury, financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009.


TradingEconomics.com, Bank of England
7/7/2011 12:09:34 PM