European Economic News

BoE Leaves QE Unchanged At GBP 375 Bln, Rate At 0.50%

The Bank of England retained its quantitative easing at GBP 375 billion and its record low interest rate on Thursday.

The nine-member Monetary Policy Committee led by Governor Mervyn King voted to retain the asset purchase programme at GBP 375 billion. The previous change in asset purchases was in July, when it was raised by GBP 50 billion.

The panel also decided to keep the key interest rate unchanged at 0.50 percent. The current rate is the lowest since the central bank was established in 1694.

Outgoing BoE chief Mervyn King together with Paul Fisher and David Miles have made unsuccessful attempts over the last few months to lift stimulus. Other policymakers rejected their call citing the impact of further easing on the pound and risks to inflation.

The minutes of the meeting, to be published on May 22, will reveal today's voting pattern.

The decision to hold off from quantitative easing was once again likely the result of a tightly split vote, said IHS Global Insight's chief UK economist Howard Archer.

by RTTNews Staff Writer

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