Bank of England Keeps 200 Billion-Pound Bond Plan

The Bank of England stuck to its plan to buy as much as 200 billion pounds ($326 billion) in bonds as officials seek to ensure the economy’s escape from the longest recession on record.

Bank of England Statement

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with its programme of asset purchases totalling £200 billion financed by the issuance of central bank reserves.

The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.

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., BoE
12/10/2009 9:35:02 AM