United Kingdom: Bank of England MPC Keeps Interest Rate and Quantitative Easing Unchanged7 April, 2011, 19:08. Posted by Zarathustra
Tags: Bank of England, Economy, Inflation, United Kingdom
The Monetary Policy Committed (MPC) of the Bank of England announced its April policy decision: no change.
The Bank Rate is maintained at 0.5%, and the size of the asset purchase programme a.k.a. quantitative easing maintained at £200 billion. The decision was in-line with expectation.
The minutes for this meeting will be published on 20 April. It will be interesting to see how the policy makers weigh the balance between fighting with the high inflation and supporting the economic growth. Just a reminder, CPI inflation was at 4.4%, while the RPI is at an even rate of 5.5% in February, and growth was shrinking in Q4 of 2010.
Meanwhile, focus will be off to Eurozone, where the European Central Bank will be announcing its interest rate decision. It is expected to increase interest rate by 25 basis points. Won’t be a good news, those it is widely expected.