BOEBank of England maintains Bank Rate at 0.5% and the size of the Asset Purchase Programme at £375 billion

The Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

With outputs still well below its pre–recession level and the unemployment rate has not shown any convincing signs of a sustained reduction.

There has been considerable media attention on the new Bank of England governor, Mark Carney, to see what changes he and the Monetary Policy Committee might make to monetary policy.

With inflation at 2.9% and the MPC about to reveal its hand on the possibility of offering forward guidance on policy, the decision to hold Bank Rate and quantitative easing again this month was widely expected.

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