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November 12, 2011

Bank of England Holds Rate at 0.50%, Quantitative Easing Program at £275B (Guest Post)

By Central Bank News

The Bank of England (BoE) kept the Bank Rate at a record low stimulatory level of 0.50%, and kept its Asset Purchase Program (Quantitative Easing) unchanged at GBP 275 billion, after increasing it by 75 billion at its previous meeting. On its asset purchase program, the Bank said:
"The Committee expects the announced programme to take another three months to complete. The scale of the programme will be kept under review."

The Bank also held the official Bank Rate unchanged at 0.50% at its October meeting this year; the rate has remained on hold since March 2009, when the Bank reduced the interest rate by 50 basis points to 0.50%.  The United Kingdom reported annual consumer price inflation of 5.2% in September, 4.5% in August, and 4.4% in July, and still above the Bank's inflation target of 2.00%.  

The UK saw quarterly GDP growth of 0.5% in Q3 this year (0.1% in Q2, 0.5% in Q1), while annual economic growth was reported at 0.5% (0.7% in Q2, 1.6% in Q1).  The British pound (GBP) is up about 3% against the US dollar so far this year, while the USDGBP exchange rate last traded around 0.62.

About The AuthorCentral Bank News is dedicated to provide timely, and comprehensive global central banks news and policy developments (EconMatters author archive here.)

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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