Bank of England Keeps Policy On Hold in September


In its September 5th 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 Bank also announced it will reinvest the £1.9 billion of cash flows associated with the redemption of the September 2013 gilt held in the Asset Purchase Facility.

The Committee reached its decisions in the context of the monetary policy forward guidance announced alongside the publication of the August 2013 Inflation Report. The decision to reinvest £1.9 billion from maturing gilts was taken in the context of that guidance. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

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.

Bank of England Keeps Policy On Hold in September


BoE | Nuno Fontes | nuno@tradingeconomics.com
9/5/2013 12:14:50 PM