BoE keeps rates unchanged
(14 December 2009 – UK) The Bank of England has announced that it will keep its official interest rate at the record low of 0.50 percent.
The interest rate decision sees the record low continue for the ninth consecutive month.
The committee also voted to continue with its program of asset purchases, which was increased by a further £25 billion (A$43 billion) in November this year, to a total of £200 billion.
The program is suspected to continue for another two months, with the scale of the programme to continue to be kept under review.
Ian McCafferty, chief economic adviser to the CBI, said that it’s not a surprise that the Bank has taken no new action, as the latest round of quantitative easing announced last month is due to continue until February.
Mr McCafferty added also added that economic growth should be anaemic at best across 2010, so the bank will have to continue looking to monetary policy levers for some time yet, and interest rates are likely to remain low for some time.
The committee also voted to continue with its program of asset purchases, which was increased by a further £25 billion (A$43 billion) in November this year, to a total of £200 billion.
The program is suspected to continue for another two months, with the scale of the programme to continue to be kept under review.
Ian McCafferty, chief economic adviser to the CBI, said that it’s not a surprise that the Bank has taken no new action, as the latest round of quantitative easing announced last month is due to continue until February.
Mr McCafferty added also added that economic growth should be anaemic at best across 2010, so the bank will have to continue looking to monetary policy levers for some time yet, and interest rates are likely to remain low for some time.
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