The Bank also announced the introduction of the Extended Collateral Term Repo (ECTR) Facility. The Bank said: "This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity" and added "there is currently no shortage of short-term sterling liquidity in the market."
The Bank also held the official Bank Rate unchanged at 0.50% at its October meeting this year; the rate has remained on hold since March 2009, when the Bank reduced the interest rate by 50 basis points to 0.50%. The United Kingdom reported annual consumer price inflation of 5.2% in September, 4.5% in August, and 4.4% in July, and still above the Bank's inflation target of 2.00%.
The UK saw quarterly GDP growth of 0.5% in Q3 this year (0.1% in Q2, 0.5% in Q1), while annual economic growth was reported at 0.5% (0.7% in Q2, 1.6% in Q1). The British pound (GBP) is basically flat against the US dollar so far this year, while the USDGBP exchange rate last traded around 0.64.