BOE leaves rates at 0.50%
5 February 2010
The Bank of England put a hold on its unprecedented 200 billion pound asset-buying programme for the first time in 11 months on Thursday, but left the door open for more so-called quantitative easing if the economy relapsed. The pause in QE and the decision to hold interest rates at a record low of 0.5 percent had been widely expected but gilts fell and sterling rose after the announcement as some traders had positioned for an expansion of the asset-buying scheme. "The Committee will continue to monitor the appropriate scale of the asset purchase programme and further purchases would be made should the outlook warrant them," the central bank said in a statement. Analysts said the overall tone of the BoE statement appeared dovish and it would be a long while yet before the central bank moved toward tightening monetary policy after the extraordinary measures taken over the last year.
http://www.bloomberg.com/apps/news?pid=20601102&sid=a5HgT2t9AGXQ