Thursday, August 2, 2012

Bank of England maintains base rate, QE target

    The Bank of England (BOE) kept its bank rate unchanged at 0.5 percent and its target for purchasing assets worth 375 billion pounds, as expected by financial markets.
    The central bank has kept its bank rate steady since March 2009 and initiated the asset purchase program, known as quantitative easing, the same month.
    "The Committee expects the announced programme of asset purchases to take another three months to complete.  The scale of the programme will be kept under review," the bank said in a brief statement.
     The asset purchase program was expanded by 50 billion pounds last month and economists had expected the bank to let the program run its course before deciding whether to expand it.
      The BOE also sait its latest inflation report would be published on Aug. 8.
     The economy in the United Kingdom contracted by 0.7 percent in the second quarter from the first, while the inflation rate eased to 2.4 percent in June from 2.8 percent in May.


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