0.5% remains for Interest Rates, £75bn more for the Economy
The Bank of England today took the decision to inject a further £75bn into the UK Economy via it’s programme of quantitaive easing (QE). This is in addition to the £200bn it has already pupmed into back in 2009.
The Bank was widely expected to take some form of action either this month or next month after further economic data was released.
However it looks like the data for the UK economony, showing that it grew by 0.1% – less than previously thought, caused a decision this month.
“In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated,” the Bank said in a statement.
The Bank also decided that it would keep the historic low interest rates at 0.5%, something at the beginning of the year many had predicted would start to increase towards the end of 2011.
The European Central Bank today also announced to maintain it’s interest rates at the relatively high levels of 1.5%. On top of this it has announced 40bn euros of emergency loans for eurozone banks.
Categories: Bank Interest Rates