Bank of England votes to Pump more money into the economy

[caption id="attachment_4688" align="alignright" width="267" caption="Bank of England Pumps more money into the economy."][/caption] The Bank of England (BoE) today voted to maintain the Bank rate at 0.5%, continuing the long running record low. This was contrary to some speculation, albeit small, that the Bank may reduce the bank rate further. The Banks response to this is that lowering rates further would not have the desired impact, of course this remains an option to them over the medium term. Indeed the European Central Bank did cut its rate today from 1% to 0.75%. However the Banks Monetary Policy Committee (MPC) did vote to increase the level of the asset purchase programme, known as Quantitative Easing by £50bn. This extra £50bn being pumped into the economy raises the total amount within the QE stimulus to £375bn. Without this increase the Bank sees a danger that the UK Inflation will fall below its target...
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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 its 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. Bank of England injects further £75bn into economy "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. Interest Rates The Bank also decided that it would keep the historic low interest rates at 0.5%, something at...
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Bank keeps Interest Rates at record low of 0.5%

The Bank of England (BoE) has announced today that it will keep interest rates at 0.5%, the record low that has remained for 27 months now. Economists had expected the decision with recent market data highlighting the continuing concerns over the strength of the UK recrovery. This is on the back of and despite the increase in inflation to 4.5%, up 0.5% from March. In contrast signs from the European Central Bank are that interest rates may rise there next month after being held at 1.25% last Thursday. It is believed that the continuing high inflation rate in the UK will mean it more likely that the BoE will increase rates at some time this year. This is backed by the continued pressure on the MPC  with three members voting for a rise over the last five months. James Knightley, economist at ING stated: "However, with inflation likely to move above...
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Bank of England keeps its nerve!

[caption id="attachment_4688" align="alignright" width="234" caption="Bank Interest Rates held."][/caption] The Bank of England (BoE) yesterday announced it would keep interest rates at the record low of 0.5% and maintin the asset purchase scheme. The Monetary Policy Committee has been split for a while with wide speculation that interest rates could soon rise. With UK inflation higher than the agreed target a key mechanism to help recduce this is to increase interest rates. But this has a knock on impact to the overall economy with companies and people having to pay more for their borrowing. Their decision was likely to have been supported by data this week that pointed to a slowdown in growth in manufacturing, construction and services. Seperately the European Central Bank decided to hold their interest rate at 1.25% after raising it last month from 1%. Furture interest rates "Our view remains that the Bank is likely to move away...
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BoE and ECB Leave Interest Rates Unchanged, 0.5% and 1%

The Bank of England today announced it would leave the interest rates on hold at 0.5%, now the seventh successive month. The Bank also decided to continue with the quantitative easing (QE) which is likely to take another month to complete. – View full BBC Article Also today the European Central Bank (ECB) kept interest rates on hold at 1% and is expected to wait several months before raising then in order to help the eurozone economy. – View full BBC Article
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