8th October 2012 - Business News

Bank holds interest rate and opts against fresh stimulus

The Bank of England’s Monetary Policy Committee (MPC) has opted against changing the interest rate, which remains at 0.5%, as well as not introducing any new stimulus measures.

There will be no further quantitative easing (QE), meaning that it remains at its current level of £375 billion. However, some analysts expect the amount of QE to be increased next month.

“This is likely to have been another relatively straightforward decision for the MPC, as the current round of QE has not yet been completed,”

Anna Leach, CBI Head of Economic Analysis, said.

“Looking ahead to November’s meeting, we think that the Committee is likely to favour further asset purchases. While there have been a few positive signs in recent data, underlying conditions remain relatively flat.

“Meanwhile, uncertainty around the international backdrop is likely to build further through the autumn, keeping confidence in check.”

 

Source.