Bank of England Keeps Rate at 0.5%

Steven Bobson, Europe & Americas Editor
September 06, 2012 /

The Bank of England’s Monetary Policy Committee has voted to maintain the official bank rate paid on commercial bank reserves at 0.5%.

The previous change in bank rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009.

The committee also voted to continue with its programme of asset purchases totalling £375 billion, financed by the issuance of central bank reserves.

BoE expects the announced programme of asset purchases to take another two months to complete. The scale of the programme will be kept under review.

The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

 

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