BoE Leaves Monetary Policy Unchanged

The Bank of England decided to keep the bank rate unchanged at 0.5 percent on November 6th. The decision was widely expected.

The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

The Bank is expected to raise rates only next spring, after parliamentary election in May.

On November 12th, the central bank will release its quarterly Inflation Report with forecasts for growth, unemployment and prices. Yet, latest indicators send mixed signs. In September, the inflation rate slowed more than expected to 1.5 percent, the lowest figure in five years. House prices fell 0.4 percent in October, according to Halifax and employment grew at its slowest pace in more than a year in the three months to August.

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.

BoE Leaves Monetary Policy Unchanged

Bank of England | Joana Taborda |
11/6/2014 12:44:22 PM