Bank of England Keeps Monetary Policy Unchanged


In it August 1st meeting, the Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 percent. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

BoE's Governor Mark Carney was expected to introduce forward guidance to cement the economic recovery but the decision of maintaining the benchmark interest rate and the size of the Asset Purchase Programme unchanged was announced with no further statements.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5 percent on 5 March 2009.  A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009.  The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

BoE | Nuno Fontes | nuno@tradingeconomics.com
8/1/2013 12:11:07 PM