Bank of England adds £25bn to QE
by Richard Kilner
Story link: Bank of England adds £25bn to QE
The Monetary Policy Committee (MPC) of the Bank of England has elected to retain the interest rate at 0.5%, the lowest in the institution’s history.
The rate retention was widely expected, and the Bank of England has also chosen to increase its programme of quantitative easing (effectively printing money) of asset purchases by £25bn, to £200bn.
The quantitative easing programme had been scheduled to end this month, having earlier been forecast to end in August when its scale was increased by £50bn.
The institution also predicted that inflation would overshoot the 2% target in the near future due to rising petrol costs and the return of VAT from its present, temporary level of 15% to its previous rate of 17.5%.
Generally, central banks are retaining interest rates at the low point they reached following global cuts during the financial crisis, but in Australia the Reserve Bank this month increased rates by 25 basis points for the second consecutive month.
Add to Bookmarks:
Related stories to: Bank of England adds £25bn to QE
Cook comments on Bank of England inflation report ...Northern Rock sells over £2bn assets ... »
No comments yet.Leave a comment
Previous: « Consumers wary of supermarket banks
Next: BNP Paribas announces third quarter results »
Visited 261 times, 3 so far today