BoE Leaves Its Monetary Policy Unchanged

The Bank of England has held back from injecting more emergency cash into the economy. The Bank has decided to keep UK interest rates at 0.5 percent and announced no change to its quantitative easing (QE) programme. The interest rates have been at 0.5 percent since March 2009.

The Bank’s Monetary Policy Committee kept its QE stock at 325 billion pounds, after injecting 50 billion pounds in February

Despite widening debates among policy makers over the need for more stimulus, many economists had anticipated such a decision, as most expect the economy to have improved sufficiently in the first quarter, prior to the next BOE’s QE meeting that was postponed until May.

While The UK’s recovery has shown tentative signs of gathering pace, the central bank has said that the UK is unlikely to enter recession this year, forecasting growth of about 1 percent.

The focus still remains on whether further asset purchases will be announced next month.

Source: BBC

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.