U.K. Rates To Remain on Hold

After cutting its benchmark interest rate by an unprecedented 4.5 percentage points to 0.5%, it is expected that the Bank of England will keep the rate unchanged at its July 9 meeting.

The Monetary Policy Committee is likely to focus on its quantitative easing policy. Though, the decision over further expansion of the current target may be postponed until the Inflation Report meeting in August.

So far, the Bank of England has spent £106bn on unconventional monetary policy measures and it is estimated that the current £125bn target will be completed at the end of July.

7/8/2009 2:53:32 PM