The Bank of England (BoE) has elected to hold the base rate at 0.5% and maintain the size of its quantitative easing (QE) programme at £375bn.
The Bank's Monetary Policy Committee (MPC) was expected to leave the overnight rate at this historic low, where it has remained since 2009, following assurances from senior figures at the central Bank in recent weeks. The Bank announced today it will reinvest £1.9bn in cash flows associated with the maturing September 2013 gilt, a decision made "in the context of [the forward] guidance" that has seen it commit to loose monetary policy. BoE deputy governor Charlie Bean last week said the Bank has sent a "clear signal" that interest rates will remain unchanged in the immediate future. ...
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