BoE keeps rates at 0.5% and maintains £175bn QE

Analysts widely predicted the decision against the backdrop of recent encouraging signs Britain is emerging from a recession. The nation's economy shrank 0.6% in Q2 compared with activity in the first three months of the year, which was better than the previous estimate of minus 0.7%, according to data released by the Office for National Statistics (ONS) last month. The BoE had voted in September to freeze interest rates at 0.5% and continue its quantitative easing (QE) programme to pump out £175bn of new money. It today announced it was sticking with its QE targets. The Associatio...