BoE holds fire on QE as data improves

clock

The Bank of England has opted not to implement further quantitative easing and held interest rates at 0.5% for the 49th consecutive month.

The Bank left the size of its asset purchase programme unchanged at £375bn on a day that better-than-expected services data added weight to hopes the UK will avoid a triple-dip recession. The services purchasing managers index (PMI) reading for March came in at 52.4, above both February's 51.8 mark and the 51.5 reading that had been expected by economists. That points to Q1 2013 GDP growth of 0.1%, according to data provider Markit, following on from the 0.3% contraction seen in Q4 2012. Capital Economics' UK economist Samuel Tombs expects further easing later this year but noted t...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

OBR independence 'a major advantage' for UK economy

OBR independence 'a major advantage' for UK economy

Treasury Committee hearing

Alex Sebastian
clock 20 May 2026 • 4 min read
Bank of England warns of future rate uncertainty after vote to hold at 3.75%

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

One vote to hike rates

Michael Nelson
clock 30 April 2026 • 2 min read
Navigating an uncertain environment: Applying a disciplined, data-driven approach

Navigating an uncertain environment: Applying a disciplined, data-driven approach

'​Looking ahead, the fundamental case remains constructive'

Fahad Hassan
clock 28 April 2026 • 2 min read