Thursday, July 09, 2009
Bank holds fire on more QE
Posted by David Smith at 12:15 PM
Category: Thoughts and responses

The Bank of England's monetary policy committee (MPC) left Bank rate unchanged at 0.5% but deferred a decision on whether to extend the quantitative easing programme beyond the existing £125 billion until next month. It was always going to be a close-run thing about whether they would go now for more QE or wait. It will, however, raise questions about whether the policy has now come to an end.

This is its statement:

"The Bank of Englandís 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 £125 billion financed by the issuance of central bank reserves.

"The Committee expects that the announced programme will take another month to complete. The Committee will review the scale of the programme again at its August meeting, alongside its latest inflation projections."