Thursday, April 09, 2009
Carry on easing
Posted by David Smith at 02:00 PM
Category: Thoughts and responses

Ahead of today's meeting of the Bank of England's monetary policy committee (MPC), few expected a further cut in Bank rate but the markets were keenly interested in what the Bank would say about its 75 billion programme of quantitative easing (QE). Bank rate was duly left at 0.5% - the first freeze since October - and will stay there for a while.

Meanwhile, what the Bank said on QE was reassuring enough. It said: "The Committee also voted to continue with the programme, announced on 5 March, of asset purchases totalling 75 billion financed by the issuance of central bank reserves. The Committee noted that since its previous meeting a total of just over 26 billion of asset purchases had been made and that it would take a further two months to complete that programme."