Wednesday, September 23, 2009
No surprises from the Bank
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

The minutes of the Bank of England monetary policy committee's September meeting are more notable for what they did not say than for what they did. The committee voted unanimously to keep Bank rate at 0.5% and persist with the 175 billion programme of quantitative easing ((QE). There was no discussion of what the markets had been looking for, hints of when, or if, the Bank might cut the interest rate on commercial bank reserves.

The Bank did say that inflation is likely to fall for one more month, before rising "sharply" as temporary effects drop out. The implications of this for policy do not appear significant, however. The minutes are here. Also worth looking at is the Bank's Quarterly Bulletin article on sterling, which caused a certain amount of fuss earlier in the week. It is here.