(9 March 2010 – UK)The Bank of England (BOE) has left its key lending rates at record low levels, amid a sluggish and uncertain economic recovery.The Bank of England’s Monetary Policy Committee has maintained its key lending rate at 0.5 percent and has also decided to continue with the hold the government’s has on its £200 billion (A$333 billion) quantitative easing program.
Peter Dixon, economist, Commerzbank said that the BoE seems to be maintaining an extremely lax monetary stance and has done for a considerable time.
Bank of England’s governor, Mervyn King, and other MPC members made it clear that they are not concerned about the recent spike in inflation; however they remain worried about the pace of recovery of British economy.
Britain’s inflation in January was 3.5 percent, far higher than BOE’s target of 2 percent.