BOE keeps interest rates unchanged at Feb
10 February 2012
The Bank of England has agreed to extend its quantitative easing (QE) programme by £50bn to give a further boost to the UK economy, bringing the total amount of QE stimulus to £325bn. The central bank will start the bond purchases on Feb. 13 and hold three 1.5 billion-pound auctions a week for three months. The Bank's Monetary Policy Committee (MPC) also keep interest rates at the record low of 0.5%. UK interest rates have been held at that level since March 2009. The Bank said in a statement, "The underlying pace of recovery slowed during 2011, with activity falling slightly during the final quarter. Some recent business surveys have painted a more positive picture and asset prices have risen. But the pace of expansion in the United Kingdom's main export markets has also slowed and concerns remain about the indebtedness and competitiveness of some euro-area countries."