Bank of England Maintains Base Rate & Quantitative Easing

Bank of England Money & Credit Stats

The Bank of England today announced that it would maintain the Bank Base Rate at 0.5%, which has been widely expected.

Previously speculation that the bank may decide to make a small increase was batted away recently by the incoming Govenor Mark Carney.

The historic low of 0.5% was introduced back in March 2009.

The Bank also decided to maintain the level of stock asset purchases financed by the inssuance of central bank resevers – otherwise known as Quantitative Easing.

This remain at £375 billion which it was increased to on 5th July 2012.

The Committee reached its decisions in the context of the monetary policy forward guidance announced alongside the publication of the August 2013 Inflation Report.

Also in the context of that guidance, the Committee agreed to reinvest the £1.9 billion of cash flows associated with the redemption of the September 2013 gilt held in the Asset Purchase Facility.

Alec Hanson

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